Agreed, and that is what TurboTax does.
Be aware that this credit can only be applied against income taxes and Form 1040 line 22 [I originally typed line 13] cannot be reduced below zero. This credit cannot be applied against Other taxes such as penalties determined on Form 5329 or self-employment tax, the total of which is shown on Form 1040 line 23 [I originally typed line 14].
