Foreign Tax credit, Form 1116 - efile with or without form 1116

[skal]

My foreign tax credit includes passive category income from DIV, INT and rental income. I have statements for DIV and INT which are somewhat equivalent to 1099s. There is no payee statement for rental income and the taxes paid on it. Form 1116 needs to be filed in this case to claim credit per my understanding.

Turbo tax took me through the questions to fill out form 1116 and and my efiled return has been accepted so far.  When I look back at the pdf of the return filed there is no form 1116 included. Looking back at the form sections in the Turbo Tax desktop,  even though there is a Form 1116 with all the work sheets, on the top it says "Form not required to be filed". There is Foreign tax credit on Schedule 3 as one would expect for someone who can claim Foreign tax credit without filling Form 1116.

Can anyone explain if there is some error somewhere or why Form 1116 is not required in this case.

[guywong]

IRS provides for an election to claim Foreign Tax Credit without filing Form 1116

Instructions for Form 1116 (2023) | Internal Revenue Service

You may be able to claim the foreign tax credit without filing Form 1116. By making this election, the foreign tax credit limitation (lines 15 through 23 of the form) won't apply to you. This election is available only if you meet all of the following conditions.

• All of your foreign source gross income was “passive category income” (which includes most interest and dividends). See c. Passive Category Income , later. However, for this purpose, passive income also includes (a) income subject to the special rule for high-taxed income, described later; and (b) certain export financing interest.

• 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).

This election isn't available to estates or trusts.

If you make this election, the following rules apply.

• You can't carry over to or from any other year any foreign taxes paid or accrued in a tax year to which the election applies (but carryovers to and from other years are unaffected). See the instructions for line 10, later.

• You are still required to take into account the general rules for determining whether a tax is creditable. See Foreign Taxes Eligible for a Credit and Foreign Taxes Not Eligible for a Credit, later.

• You are still required to reduce the taxes available for credit by any amount you would have entered on line 12 of Form 1116. See the instructions for line 12, later.

To make the election, just enter on the foreign tax credit line of your tax return (for example, Schedule 3 (Form 1040), Part I, line 1) the smaller of (a) your total foreign tax, or (b) your regular tax. See the instructions for line 20, later, for how to figure your regular tax.

[skal]

Since my foreign rental income is not reported on a payee statement it seems I cannot make the election to take the credit without form 1116.

If that is correct I don't understand why TurboTax did not file Form 1116 with the efile. Even though I filled out the form 1116 with all the explanations required, the actual form was not sent. Am I missing something?