You have to enter the forms in a particular order and then answer the questions just so. The program prefers to highjack $10,000 for the lifetime credit. I am not a programmer, I just know the best way to file correctly.
Since the IRS says not to report the form, that is perfect. I think that is part of the program issue, you are not expected to enter a form that isn't taxable so the program is working to make it taxable.
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