Question

Investment Tax Credit (solar) for sole proprietor, pass-through-entity?

Forum|Forum|3 years ago
February 4, 2023
1 reply
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Within TurboTax, how do you use the Investment Tax Credit with a pass-through-entity? I think I need a Form 3468 but can't find it. I found a forms availability page, and it says Feb 16th is when that form will be available. Is that accurate?
Where do I put the "business credit" within TurboTax? Some other articles mention Form 3800, but that is for non-pass-through-entities.

TurboTax Self Employed Online

PatriciaV

Was this pass-through credit reported to you on Schedule K-1? If so, TurboTax will complete Form 3468 based on your entries from the K-1. Enter under Wages & Income >> S-Corps, Partnerships, and Trusts >> Schedule K-1.

If not from Schedule K-1, you may enter the info under Wages & Income >> Other Business Situations >> Business Credits >> Investment Credit.

According to the Forms Availability Table, Form 3468 will be ready to e-file on February 16, 2023.

For additional info, see the energy credit section of this TurboTax Tax Tip: What is Form 3468: Investment Credit

[edited to add link | 2/5/23 8:10 PST]

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J

JoshJoshJoshJoshAuthor

Thank you. I found that section thanks to your help. Two follow-ups:

1. Do you know if I can fill it out now, or should I wait until Feb 16th? On the top right it says "2022 DO NOT FILE".

2. As an alternative to the ITC credit (Form 3486), I could use the Production Tax Credit instead (Form 8835). I was just going to use the ITC credit because I do not want to mail in my return and the form 8835 is not available in TurboTax. However, in that section you just directed me to, I do see that the form 3800 (General Business Credit) is available, which allows you to enter values from the Form 8835. So, the question is, if I complete the Form 8835 (PTC) manually and enter its values into the General Tax Credit (Form 3800), can I upload the manually entered form 8835 to TurboTax somehow and include it with my e-file?

As a side note, I'm not doing a Schedule K-1, just 1099 and Schedule F income.

PatriciaV

Yes, complete your entries in TurboTax now. When the form is ready, you can run the Federal review check again before you e-file.

You must use the electronic versions of all forms in order to e-file using TurboTax. The IRS will not accept manually entered forms if the main return is e-filed. Also know that overriding any calculated or flow-through values in TurboTax not only invalidates the return for e-filing, but you would lose your accuracy guarantees as well.

Finally, be careful to report your tax credit on the appropriate form. The IRS may reject your credit if it's reported on the wrong form.

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