1040-US: Some credits have different amounts than I entered or are not appearing on Form 1040, page 2, line 54

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Question

Why are credits entered in Screen Cr-Bus, Cr-Bus2, Cr-Bus3, Cr-Bus4, Cr-Bus5, K1-4, 3468, 8907, 8910, or 8911 not included on Form 1040, Page 2, line 54?

Answer

Credits are subject to several types of limitations. Business credits from passive activities are first limited on Form 8582-CR to the tax on passive income. After passing that limitation, passive credits and non-passive credits must pass credit ordering rules and tax limitations on Form 3800 – General Business Credit. In addition, the credit for increasing research is limited to the income of the activity producing the credit. Review Form 8582-CR and Form 3800 and the related worksheets and statements supporting these forms to see any credits limited. General Business Carryovers are shown on the General Busness Credit Carryover Report. All return carryovers are shown on the Return Carryover Summary.

Related topic: Tax credits FAQs (1040)

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