What this line means
The total of less common nonrefundable credits not listed separately on lines 1 through 5b. This line combines credits from multiple sub-lines: the elderly or disabled credit (Schedule R), the general business credit (Form 3800), the credit for prior year minimum tax (Form 8801), the adoption credit (Form 8839), the mortgage interest credit (Form 8396), and other miscellaneous nonrefundable credits. Each sub-credit has its own form; the results flow into this single line.
Does this apply to you?
- You are age 65 or older, or permanently and totally disabled, and meet the income limits for the elderly or disabled credit
- You own a small business and have credits for research activities, work opportunity, or other business-related credits from Form 3800
- You paid alternative minimum tax in a prior year and are eligible for the AMT credit carryforward on Form 8801
- You adopted a child and incurred qualified adoption expenses
- You received a mortgage credit certificate from a state or local government when you purchased your home
Easy to overlook
General business credit carryforwards from prior years The general business credit (Form 3800) includes carryforwards from credits you could not fully use in prior years because of tax liability limits. 1 If your business earned a research credit or work opportunity credit that exceeded your tax in the year it was generated, the unused portion carries forward up to 20 years. Filers who change tax preparers or switch to self-preparation often lose track of these carryforwards. General filing pattern — general business credit carryforward missed
The elderly or disabled credit has strict income limits Schedule R calculates the credit for taxpayers age 65+ or those who are permanently and totally disabled. The credit is limited to filers with AGI below $17,500 (single) or $25,000 (married filing jointly), and nontaxable Social Security below $5,000 (single) or $7,500 (MFJ). 2 These thresholds are low enough that most retirees with any significant income do not qualify, but those who do can receive a credit of up to $1,125. IRS Schedule 3 Instructions — Line 6
Watch out for this
Adding credits from lines 6d through 6z without attaching the required supporting form for each credit. Every credit flowing into line 6 requires its own form — Schedule R, Form 3800, Form 8801, Form 8839, or the applicable form for the specific credit. The IRS rejects credits on line 6 when the supporting form is missing. Each sub-line on Schedule 3 identifies which form is required.
Footnotes
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IRS Form 3800 Instructions, General Business Credit Carryforward. https://www.irs.gov/instructions/i3800 ↩
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IRS Schedule R Instructions, Credit for the Elderly or the Disabled. https://www.irs.gov/instructions/i1040sr ↩