Yes, prior to completing form 1116 and re-sourcing the USA and Canada interest income to Italy and generating the FTC, the software was showing that I had bot( a USA tax liability on that same interest income and also an amount to repay for excess premium tax credits received during 2024 under the ACA. After the FTC was generated by completing form 1116, most of the USA tax liability and the amount due to be repaid for excess premium tax credits was eliminated (not quite 100%, but most of both). I knew the FTC could of course be applied in reducing the USA tax being calculated on that same income being taxed by Italy, but I was surprised to see that the FTC could also be applied against the excess premium tax credit that was showing as being due by me re form 1095-A.
