Deductions & credits

If you have more credits, they may be offsetting your tax before your Form 8911 credit is applied, in which case the credit won’t be used.

No, the credit won’t flow through to your state return.

The IRS has a specific order in which credits are to be applied to offset tax.

As far as the credits you’re inquiring about, they’re applied to tax in this order before getting to the credit on Form 8911:

1. Foreign Tax Credit (Form 1116)

2. Nonrefundable child tax credit or credit for other dependents from Schedule 8812

3. Credit for child and dependent care expenses from Form 2441

4. Education credits from Form 8863, line 19

5. Retirement savings contributions credit. Attach Form 8880 

6. Residential energy credits. Attach Form 5695 and, 

7. Total other nonrefundable credits, reduced by any general business credit reported on Schedule 3, line 6a, any credit for prior year minimum tax reported on Schedule 3, line 6b, or any credit to holders of tax credit bonds reported on Schedule 3, line 6k). 

If your taxes are completely offset at this point, you have no tax for this credit to offset.  See Instructions for Form 8911 (Rev. January 2022) for more information.

In TurboTax Online, you can view your return by: 

1. Click Pick up where you left off if it’s on your screen.

2. Click on Tax Tools in the left pane.  

3. Click on Tools. 

4. Click on View Tax Summary. 

5. Click on Preview my 1040 on the left side of the screen.

@adeleseifried