Line 33 on the 1116 is not picking up the calculated amount on Line 22, but rather the maximum credit from Line 14. Therefore credit carried to Line 1 on Schedule 3 is overstated. Seems incorrect to me - is there a law change I don't know about or is the software wrong?
From your response, I deduce that your client has no foreign source income other than what's on the 1099-DIV.
Given the amount, your client will qualify for §904(j), which allows him/her to claim foreign tax credit without filing a F.1116 and without regard to the limitation that would otherwise apply.
This is an election that does not require a statement to be attached to the return - you client can simply claim that as a credit on Sch 3, limited to the smaller of the foreign tax from the 1099-DIV or regular tax on the return. If it is limited by regular tax, however, there will still be no FTC carryback/carryover to other years.
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