Should credit for dependent (line 12) be subtracted from tax paid (line11)? credit for dependent would be lost, and refund would be reduced by $500.

[david-n-ellis]

Why on the 2018 1040 Form, the Credit for Dependent (Line 12) is subtracted from the Tax Paid (Line 11).  It should be added to Tax Paid.  If it is subtracted, the benefit for Credit for Dependent is lost and the Refund is reduced by $500.

[ChristieB · Accepted solution]

Line 11 is the tax you have been assessed based off of your taxable income on Line 10. This is the amount of tax you would pay if you had no federal taxes withheld, credits, or any other adjustments made to it. 

Line 11 is reduced first by your non-refundable credits on Line 12 (this includes the Child Tax Credit and the Child and Dependent Care Credit. 

From your example, if your Credit for Dependent is $500, then your tax owed is reduced by this amount and your new tax owed is on Line 13. 

The next steps will be to add in Schedule 4 Other Taxes on Line 14, and then subtract your Federal Withholding from your W-2 on Line 16, and refundable credits on Line 17.