I had a similar confusion. And explanations often lack clarity.
Here is my take on it.
Line 7: Applicable credit amount
And 4,769,800 would be the tax to pay on a 12,060,000 donation if we did not have any credit.
By entering 4,769,800 on line 7, we are saying, this is my tax credit. I will have to pay taxes only if my taxes are above.
Everyone mention the 12M donation amount, however the tax form requires you to enter the corresponding tax.
I will never use all my credits, so it is a painful form to fill for nothing.
Good luck!
