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Thank you for the reply!

 

Just to make sure I understand it correctly, it sounds like all I need to do is calculate the credit amount, say $400, and add it to the existing value in line 27 of form 500, say $200, so I will end up with $600 in line 27. and I don't need to add the $400 anywhere else in the form. Correct? 

 

Also, for the explanation, shall I just write on a paper explaining how I calculated the credit? or is there any materials I should include to support it?

 

Thanks!