There are actually three conditions that must be met to claim foreign tax credit without using Form 1116. According to the 2021 Instructions for Form 1116, the conditions are:
• All of your foreign source gross income was “passive category income” (which includes most interest and dividends).
• All the income and any foreign taxes paid on it were reported to you on a qualified payee statement. Qualified payee statements include Form 1099-DIV, Form 1099-INT, Schedule K-1 (Form 1041), Schedule K-3 (Form 1065), Schedule K-3 (Form 1120-S), or similar substitute statements.
• Your total creditable foreign taxes aren't more than $300 ($600 if married filing a joint return).
That said, if you’re saying you want to delete Form 1116 (i.e., when you say “I do state that I don't need to file tax credit,”) this can be done. With TurboTax Online open,
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If you’re on the Hi, let's keep working on your taxes! screen that displays the categories Personal Info, Income & Expenses, and others in the center of the screen, and none of those categories are open, click the dropdown next to any of the categories, then select the Review/Edit or Pick up where you left off button. If one of the categories is already open and has a Continue button, select the button
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Next, in the pane on the left side of your screen, you should see Tax Tools. Select the dropdown to the right of Tax Tools.
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Then, under that, select Tools.
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In the Tool Center pop-up, select Delete a form.
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Select Delete next to Form 1116 and its worksheet, if present in the list, and follow the onscreen instructions.
If you’re using TurboTax Desktop or a download, please see the TurboTax Help article How do I delete a tax form in the TurboTax CD/Download software? for guidance.
If that wasn’t your question, please explain what you’re wanting to do
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