Tax Credit Ordering Rules

[cpabsd]

I'm going to try this one more time. I posted before but did not receive any helpful posts.

Client has $2800 in General business creidts. They have $1500 in income tax. They also have 3 children qualifying for the child tax credit. ATX and child tax worksheet is applying child tax credit toward income tax which means they still have the $2800 in General Business credits to carryforward. Is this correct? I cannot find any documentation clarifying the order to apply these credits but Form 3800 page 2 does not allow them to use any of the $2800 carryforward. It would be helpful to use the general business credits up first and increase the Additional child tax credit so that there would be some reduction in the balance due. There is consideralbe SE tax for this client. They had a very good year and chose not to pay any estimates. Thanks for any guidance. I know we are all busy.

[zeke]

I believe the credits are applied in the order shown on the 1040, & the child tax credit is 1st.... I think you are out of luck.