diff --git a/detekt-rules-style/src/main/kotlin/io/gitlab/arturbosch/detekt/rules/style/ReturnCount.kt b/detekt-rules-style/src/main/kotlin/io/gitlab/arturbosch/detekt/rules/style/ReturnCount.kt
index e0d05d66850..2215668712b 100644
--- a/detekt-rules-style/src/main/kotlin/io/gitlab/arturbosch/detekt/rules/style/ReturnCount.kt
+++ b/detekt-rules-style/src/main/kotlin/io/gitlab/arturbosch/detekt/rules/style/ReturnCount.kt
@@ -13,8 +13,7 @@ import io.gitlab.arturbosch.detekt.api.internal.Configuration
 import io.gitlab.arturbosch.detekt.api.simplePatternToRegex
 import io.gitlab.arturbosch.detekt.rules.parentsOfTypeUntil
 import io.gitlab.arturbosch.detekt.rules.yieldStatementsSkippingGuardClauses
-import org.jetbrains.kotlin.psi.KtCallExpression
-import org.jetbrains.kotlin.psi.KtNameReferenceExpression
+import org.jetbrains.kotlin.psi.KtLambdaExpression
 import org.jetbrains.kotlin.psi.KtNamedFunction
 import org.jetbrains.kotlin.psi.KtReturnExpression
 import org.jetbrains.kotlin.psi.psiUtil.collectDescendantsOfType
@@ -93,11 +92,9 @@ class ReturnCount(config: Config = Config.empty) : Rule(config) {
     private fun shouldBeIgnored(function: KtNamedFunction) = function.name in excludedFunctions
 
     private fun countReturnStatements(function: KtNamedFunction): Int {
-        fun KtReturnExpression.isExcluded(): Boolean = when {
-            excludeLabeled && labeledExpression != null -> true
-            excludeReturnFromLambda && isNamedReturnFromLambda() -> true
-            else -> false
-        }
+        fun KtReturnExpression.isExcluded(): Boolean =
+            (excludeReturnFromLambda && isNamedReturnFromLambda()) ||
+                (excludeLabeled && labeledExpression != null)
 
         val statements = if (excludeGuardClauses) {
             function.yieldStatementsSkippingGuardClauses<KtReturnExpression>()
@@ -113,11 +110,7 @@ class ReturnCount(config: Config = Config.empty) : Rule(config) {
     private fun KtReturnExpression.isNamedReturnFromLambda(): Boolean {
         val label = this.labeledExpression
         if (label != null) {
-            return this.parentsOfTypeUntil<KtCallExpression, KtNamedFunction>()
-                .map { it.calleeExpression }
-                .filterIsInstance<KtNameReferenceExpression>()
-                .map { it.text }
-                .any { it in label.text }
+            return this.parentsOfTypeUntil<KtLambdaExpression, KtNamedFunction>().any()
         }
         return false
     }
diff --git a/detekt-rules-style/src/test/kotlin/io/gitlab/arturbosch/detekt/rules/style/ReturnCountSpec.kt b/detekt-rules-style/src/test/kotlin/io/gitlab/arturbosch/detekt/rules/style/ReturnCountSpec.kt
index a0966fc9154..b9e43bd7dc8 100644
--- a/detekt-rules-style/src/test/kotlin/io/gitlab/arturbosch/detekt/rules/style/ReturnCountSpec.kt
+++ b/detekt-rules-style/src/test/kotlin/io/gitlab/arturbosch/detekt/rules/style/ReturnCountSpec.kt
@@ -512,4 +512,42 @@ class ReturnCountSpec {
             assertThat(findings).isEmpty()
         }
     }
+
+    @Nested
+    inner class `function with lambda which has explicit label` {
+        val code = """
+        fun test() {
+            listOf(1, 2, 3, 4, 5).forEach lit@{
+                if (it == 3) return@lit
+                if (it == 4) return@lit
+            }
+            return
+        }
+        """.trimIndent()
+
+        @Test
+        fun `should count labeled return of lambda with explicit label`() {
+            val findings = ReturnCount(TestConfig(mapOf(EXCLUDE_RETURN_FROM_LAMBDA to "false"))).compileAndLint(code)
+            assertThat(findings).hasSize(1)
+        }
+
+        @Test
+        fun `should not count labeled return of lambda with explicit label when deactivated by default`() {
+            val findings = ReturnCount().compileAndLint(code)
+            assertThat(findings).isEmpty()
+        }
+
+        @Test
+        fun `excludeReturnFromLambda should take precedence over excludeLabeled`() {
+            val findings = ReturnCount(
+                TestConfig(
+                    mapOf(
+                        EXCLUDE_RETURN_FROM_LAMBDA to "true",
+                        EXCLUDE_LABELED to "false"
+                    )
+                )
+            ).compileAndLint(code)
+            assertThat(findings).isEmpty()
+        }
+    }
 }