@ calibadger wrote:
Not sure if a software bug or operator error.
Foreign tax credit amount shown on line 20 does not drop down to line 37.
Tax amount on line 18, is reduced by amount shown on lines 20, producing a correct "total tax" on line 24. However when line 33 is deducted from line 24, the result on line 37 is incorrect. Only year 2020 estimated payment are subtracted from tax, not the foreign tax credit. I am unable to modify the amount shown in box 37 of form 1040.
How do I correct this?
The Foreign Tax Credit should be included in any figure on Form 1040, Line 20, and then is subtracted from your taxes to arrive at the figure on Line 22. So at that point the FTC would have already lowered your taxes and wouldn't be subtracted again. i.e., Foreign Tax Credit is subtracted prior to Total Tax (Line 24), thus lowering your total tax liability. While estimated taxes are payments subtracted on Line 26 after Total Tax.
I'm not sure what you mean by "doesn't drop down to Line 37." It has already been subtracted out prior to Total Tax, so the Total Tax figure on Line 24 and any figure on Line 37 should already take that into account. For illustration purposes, here's a very basic example, which assumes there aren't other credits on Schedules 2 and 3, no SE tax, no additional credits/payments other than estimated taxes.
Line 18: 4,000
Line 20: 250 Foreign tax credit
Line 22: 3,750
Line 24: 3,750 Total Tax
Line 26: 3,000 Estimated tax payments
Line 33: 3,000 Total payments
Line 37: 750 Tax due
The figure on Line 37 in this example already takes into consideration the subtraction of the 250.
If that doesn't explain your situation, then you need to provide more info. But don't post any personal info in this public forum. You can use fake numbers like I did.
