The constraint to which you referred is indeed the reason for the number you’re seeing. There’s actually another possible limitation (the credit will be smaller than what you actually paid if the U.S. tax allocable to that amount of foreign income is smaller), but since you’ve verified the credit matches your tax liability exactly (at that point on the return), then that’s it.
The Foreign Tax Credit is a “non-refundable credit,” which means it can only reduce your tax liability down to zero, but no further. (Refundable and non-refundable Credits are discussed here.) So if the tax you would otherwise owe is less than your credit amount (as it’s normally calculated), the credit is reduced to the amount of the tax. (That’s a simplified explanation, as things get slightly tricky when there are multiple credits…) I hope this made sense, @myhui!
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