I am getting an unexplained amount on Form 990-T Part IV Line 41. Line 39 and 40e are both zero. I am filing only to claim the health insurance credit. The amount on 41 changes if I change the hours per employee but does not change if I change the amount of payroll taxes.
Any suggestions or explanations?
Well, the hours per employee affects the full-time equivalent calculation which feeds into the credit calculation. Payroll tax does not.
I have double checked the credit calculation and it is correct. But it is reducing the refund amount because of the unexplained tax. Appears to be corporate tax (even though Part III is blank with total on line 39 of $0) because I can change the line 41 amount by allocating the controlled group share of tax brackets or by overriding the corporate tax.
