The second of my questions was why my owed Federal Tax would not reduce to zero given that I have plenty of credits from last year. The answer turns out to be that the Federal Tax owed was due to my self-employment tax. Apparently this is calculated after the credits have been applied, and so has to be paid. Credits were applied to taxes incurred from capital gains. It would be nice if TurboTax could have explained that to me at some point during the form completion process.
