AnnetteB6
Expert Alumni

Deductions & credits

Thank you for sharing your token number.

 

The key issue that I see that is keeping you from being able to claim the credit on Form 8911 does boil down to the Tentative Minimum Tax being higher than your net regular tax.  The net regular tax is not the amount shown on line 12b of Form 1040, but instead it first takes into account certain credits that would reduce the tax before the Form 8911 credit is taken into account (credits are taken in a particular order based on the tax code).  Credits that are subtracted from the line 12b amount to get the net regular tax include the Child Tax Credit/Credit for Other Dependents,  credit for Child and Dependent Care Expenses, Education Credits from Form 8863, retirement savings contributions credit from Form 8880, and residential energy credits from Form 5695.

 

This means that in your particular case the Child Tax Credit is subtracted from the tax on line 12b which resulted in your net regular tax being lower than your Tentative Minimum Tax.  This disallowed the Form 8911 credit.  

 

@michaelreeve

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