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New Member
posted Mar 22, 2024 7:09:46 PM

Why doesn't turbotax keep the full amount i entered for neighborhood assistance credit

I entered 755.5 as my indiana neighborhood assistance credit but turbotax keeps displaying as 474.00  why is this amount reduced?

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1 Replies
Expert Alumni
Mar 22, 2024 7:41:24 PM

Tax credits are distributed and are subtracted from a donor's state income tax liability.  The amount of the credit can't reduce your tax liability past zero.   My guess is that your tax liability was only $474 before you entered the credit.   Preview your IN state tax summary and see if your tax liability is zero.   Preview Form 1040.

When you preview the federal tax summary, there will be a link to the IN state summary on the left side menu.