Does TT compute correctly the application of non refundable credits?

[seghezzo]

I have 3484 non ref available credits and 3418 tax liability. TT should use 3418 but instead uses only 3110 thus reducing my refund.

I believe this is incorrect

[seghezzo]

Forgot to mention that my post related to State Taxes for Arizona

[AmyC]

There are no known issues with the AZ form or credits. Please give us more information for us to help determine the issue. What credits, what lines, anything that can help.

[seghezzo]

Form 301

Line  2                34.00                          34.00

Line 6                841.00                       841.00

Line 8               1308.00                    1308.00

Line 20             1301.00                    1301.00

Line 34             3418.00

Line 36                  39.00

Line 40                 841.00

Line 42                1308.00

Line 54                  927.00

Line 60                  3110.00

In my opinion Line 54 should be 1269.00 to maximize use of credits, and line 34 becomes zero, for a total credit of 3418.00 which matches tax liability.

I cannot understand why program limited the use of almost all line 20

Thanks in advance for your help

[DawnC]

For the credit for Contributions to Certified School Tuition Organizations, you can only deduct the amount that exceeds the maximum allowable credit on Form 323.   See AZ 301 instructions.  

[seghezzo]

As you can see in line 20, the contribution was 1301 ( in excess of 1308 of line 8), and as you see in form, the credit is available. It cannot be used in its entirety because total credi is limited by the total tax liability of Line 34, but it should definitely be greater than the 927 proposed by Turbo Tax. Or maybe there is a valid reason for limiting the credit which I do not know.. I believe that line 54 should be 1269, at which point credit matches tax liability and leaves a small carryover. The Line 36 becomes zero and the refund is increased.