I have seen this question asked numerous times and the answer is not very clear. I understand that there is an ordering list for tax credits. My water heater has died and I want to take advantage of the Hot Water Heat Pump credit. I will need to do this soon. Will this non refundable credit be applied before or after the CTC. I see others saying it isn’t done that way and why I am confused.
- Foreign tax credit from 1116(line 47 on 1040)
- Dependent care credit from 2441 (line 48 on 1040)
- Credit for the elderly or disabled from schedule R (line 53 on 1040)
- Credit from general business credit from 3800 and AMT credit 8801 (line 53 on 1040)
- Lifetime learning credit and American opportunity credit (nonrefund part) from 8863 (line 49 on line 1040)
- Retirement savings contribution credit from 8880 (line 50 on 1040)
- Nonbusiness energy property credit from 5695, part II (line 52 on 1040)
- Qualified electric vehicle credit from 8834 (line 53 on 1040)
- Alternative motor vehicle credit from 8910 (line 53 on 1040)
- Qualified plug-in electric drive motor vehicle credit from 8936 (line 53 on 1040)
- Line 12 of line 11 worksheet for child tax credit
- Mortgage interest credit from 8396 (line 53 on 1040)
- Credit for qualified adoption expense from 8839 (line 53 on 1040)
- DC Columbia first-time homebuyer credit from 8859 (line 53 on 1040)
- Residential energy efficient property credit from 5695 part I (line 52 on 1040)
