You are correct. According to this source, there should be a qualified payee statement that reports the income or foreign taxes paid. Turbo Tax assumes that you have one since you know the amount of income and foreign taxes paid. Since the the income is passive and is under the thresholds of 300/600, Turbo Tax did not generate a Form 1116. There is no section to report asking if you received a qualified payee statement.
Here you have three choices on how to report your return
- To accept the return without a Form 1116. The amount of the foreign tax credit is small and may escape scrutiny from the IRS.
- To print the form 1116 from your software and mail this in with your tax return with an explanation why you are including a Form 1116 with your return.
- To report the foreign tax paid as $601 and include the Form 1116. You are now compliant with the tax code even though the foreign tax is not correct.
Option 2 is probably the best option but if you choose this option, you won't be able to file electronically.
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