Okay, I figured out how to get rid of the Form 1116 error flag, and am posting the solution here in case it helps someone else. Caveat - this solution may not apply in every instance.
- Go to Forms. If Form 1116 doesn't appear in the auto-generated list of forms, search for 1116.
- Open a copy of Form 1116. (In my case, it says, "Form not required to be filed" at the very top, along with "DO NOT FILE" in red under the year 2021 at the upper right side. In other words, TurboTax does recognize that the foreign tax paid amount entered from the 1099 is below the $300 threshold.)
- Near the top of Form 1116, click on "Quick Zoom to Foreign Tax Credit Worksheet for data entry".
- Scroll down to Part II "Foreign Taxes Paid/Accrued. Right below, click the "paid" checkbox. (Assumes that the user did indeed pay (vs. accrue) foreign taxes in 2021.)
- TurboTax should give you a message in the gray area below the form that the error was cleared.
As an aside, I was unable to directly search for the 1116 Comp Wks worksheet, but for some reason it does appear, indented, right below the "SE Adj Wks" in the auto-generated list.
I think the original issue is the result of a programming glitch.
