Thanks. I have read the instructions over and over and checked the IRS website. It seems that all the instructions state that retirement income is to be classified in the lump-sum category. I find this strange since the retirement income may not be eligible for the lump-sum tax treatment. The instructions state that the general category is for wages, salaries and overseas allowances.

I just can't figure out why the PS program doesn't calculate the FTC when the lump-sum box is checked, yet it does when the General Income box is checked.

I really appreciate any help.