itonewbie
Level 15

There may be more than what you see on the surface.

At a high level, FTC for a particular basket of income can only be credited against tax on foreign taxable income within that category.  If you have sourced the income correctly and the FTC has not expired, Lacerte should compute the limitation correctly.

By what you stated, it is possible that your client may have not only FTC carryover but SLL/OFL, both of which would be subject to recapture but neither of which is computed automatically by Lacerte.  You would want to take a deeper look at the prior year returns.

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Still an AllStar