Thanks, after reading your answer and studying the actual 1040 form I now see that this is "credit" is above the total tax line (1040 line 24) and not part of the payments and refundable credits like the EIC which are like actual cash and do count against self-employment tax.
I do think TurboTax could do a WAY better job of explaining this as you go. To have the software lead me through questions about a credit that it already knows I don't qualify for doesn't make much sense and then to tell me I don't qualify for it without a simple explanation like "You tax liability is already zero so you do not qualify for this credit because it would have no effect on your tax due" (especially when the more info pop-up about the credit makes it look like I do qualify for it).
