ProWeb: Form 1040 - Schedule K-1 (Form 1120-S) Credit and Other Information

13 - Credits

13A Form 7213 Part II - Zero-emission nuclear power production credit - The amount entered is for reference purposes only and does not carry to any form. Report this amount on Form 7213 Part II, Credit for Zero-Emission Nuclear Power Production, Section 45U. The information needed to complete Form 7213 should have been passed through from the S corporation. When completing Form 7213, for the purposes of the general business credit you'll need to indicate the taxpayer's participation in the credit activity, whether passive or nonpassive.

13B Form 7213 Part I - Credit for production from advanced nuclear power facilities - The amount entered is for reference purposes only and does not carry to any form. Report this amount on Form 7213 Part I, Credit for Production From Advanced Nuclear Power Facilities, Section 45J. The information needed to complete Form 7213 should have been passed through from the S corporation. When completing Form 7213, for the purposes of the general business credit you'll need to indicate the taxpayer's participation in the credit activity, whether passive or nonpassive.

13C Form 8586 - Low-income housing credit (section 42(j)(5))
13D Form 8586 - Low-income housing credit (other) - The amount entered is for reference purposes only and does not carry to any form. Report an amount with either code C or code D on Form 8586, entered as a credit from a passthrough entity. When completing Form 8586, for the purposes of the general business credit you'll need to indicate the taxpayer's participation in the credit activity, whether passive or nonpassive.

13E Form 3468 - Qualified rehabilitation expenditures (rental real estate) - The amount entered is for reference purposes only and does not carry to any form. The S corporation should have included with the Schedule K-1 a statement with the information you need to complete Form 3468, Investment Credit. If the S corporation is reporting expenditures from more than one activity, the attached statement will separately identify the expenditures.

(Note that the taxpayer's share of qualified rehabilitation expenditures from property not related to rental real estate activities is reported in Box 17 with code C.)

13F Other rental real estate credits - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code F will be identified by the corporation as to the type of credit and any other information the taxpayer may need to determine these rental real estate credits. Report this credit activity on Form 8582-CR.

13G Other rental credits - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code G will be identified by the corporation as to the type of credit and any other information the taxpayer may need to determine these rental credits. Report this credit activity on Form 8582-CR.

13H Undistributed capital gains credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code H represents taxes paid on undistributed capital gains by a RIC or REIT. This tax paid is reported on Form 2439 and should be entered there, from which it will flow to Schedule 3 line 13a.

13I Form 6478 - Biofuel producer credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code I represents the Biofuel Producer Credit. Report this amou8nt on Form 6478, entered as a credit from a passthrough entity.

13J Form 5884 - Work opportunity credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code J represents the Work Opportunity Credit. This credit is reported on Form 5884, entered as a credit from a passthrough entity.

13K Form 8826 - Disabled access credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code K represents the Disabled Access Credit. Report this amount on Form 8826, entered as a credit from a passthrough entity.

13L Form 8844 - Empowerment zone employment credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code L represents the Empowerment Zone Employment Credit. Report this amount on Form 8844, entered as a credit from a passthrough entity.

13M Form 6765 - Credit for increasing research activities - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code M represents the Credit for Increasing Research Activities. Report this amount on Form 6765, entered as a credit from an S corporation.

13N Form 8846 - Credit for employer social security & Medicare taxes - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code N represents the Credit for Employer Social Security & Medicare Taxes Paid on Certain Employees. Report this amount on Form 8846, entered as a credit from a passthrough entity.

13O Backup withholding - An amount reported in Box 13 with code O represents a taxpayer's share of the credit for backup withholdings on dividends, interest income, and other types of income. A statement should be attached to the return that identifies the S corporation's name, address, EIN, and the backup withholding amount. This amount will flow to the Payments section of Form 1040.

13P Form 3468 Part II - Unused investment credit from the qualifying advanced coal project credit or qualifying gasification project credit allocated from cooperatives - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code P represents the unused investment credit from the qualifying advanced coal project credit or qualifying gasification project credit allocated from cooperatives. Report this amount on Form 3468, Part II.

You'll first need to complete Part I of Form 3468, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 3468 menu select Qualifying Advanced Coal and Gasification Project Credit, then Unused Investment Credit from Cooperatives, and enter the credit information.

13Q Form 3468 Part III - Unused investment credit from the qualifying advanced energy project credit allocated from cooperatives - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code Q represents the unused investment credit from the qualifying advanced energy project credit allocated from cooperatives. Report this amount on Form 3468, Part III.

You'll first need to complete Part I of Form 3468, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 3468 menu select Qualifying Advanced Energy Project Credit Under Section 48C, then Unused Investment Credit from Cooperatives, and enter the credit information.

13R Form 3468 Part IV - Unused investment credit from the advanced manufacturing investment credit allocated from cooperatives - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code R represents the unused investment credit from the advanced manufacturing investment credit allocated from cooperatives. Report this amount on Form 3468, Part IV.

You'll first need to complete Part I of Form 3468, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 3468 menu select Qualifying Advanced Energy Project Credit Under Section 48D, then Unused Investment Credit from Cooperatives, and enter the credit information.

13S Form 3468 Part V - Unused investment credit from clean electricity credit allocated from cooperatives - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code S represents the unused investment credit from the clean electricity credit allocated from cooperatives. Report this amount on Form 3468, Part V.

You'll first need to complete Part I of Form 3468, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 3468 menu select Clean Electricity Investment Credit Under Section 48E , then Clean Electricity Investment Credit from Cooperatives, and enter the credit information.

13T Form 3468 Part VI - Unused investment credit from the energy credit allocated from cooperatives - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code T represents the unused investment credit from the energy credit allocated from cooperatives. Report this amount on Form 3468, Part VI.

You'll first need to complete Part I of Form 3468, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 3468 menu select Energy Credit Under Section 48, then Unused Investment Credit from Cooperatives, and enter the credit information.

13U Form 3468 Part VII - Unused investment credit from the rehabilitation credit allocated from cooperatives - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code T represents the unused investment credit from the rehabilitation credit allocated from cooperatives. Report this amount on Form 3468, Part VII.

You'll first need to complete Part I of Form 3468, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 3468 menu select Rehabilitation Credit Under Section 47, then Unused Investment Credit from Cooperatives, and enter the credit information.

13V Form 7207 - Advanced manufacturing production credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code V represents the allocable Advanced Manufacturing Production Credit. Report this credit on Form 7207, entered as a credit from a passthrough entity.

You'll first need to complete Part I of Form 7207, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 7207 menu select Credit from Pass-Through Entities and enter the credit information.

13W Form 7211 - Clean electricity production credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code W represents the allocable Clean Electricity Production Credit. Report this credit on Form 7211, entered as a credit from a passthrough entity.

You'll first need to complete Part I of Form 7211, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 7211 menu select Credit from Pass-Through Entities and enter the credit information.

13X Form 7218 - Clean fuel production credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code X represents the allocable Clean Fuel Production Credit. Report this credit on Form 7218, entered as a credit from a passthrough entity.

You'll first need to complete Part I of Form 7218, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 7218 menu select Credit from Pass-Through Entities and enter the credit information.

13Y Form 7210 - Clean hydrogen production credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code Y represents the allocable Clean Hydrogen Production Credit. Report this credit on Form 7210, entered as a credit from a passthrough entity.

You'll first need to complete Part I of Form 7210, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 7210 menu select Credit from Pass-Through Entities and enter the credit information.

13Z Form 8820 - Orphan drug credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code Z represents the Orphan Drug Credit allocable to the taxpayer. This credit is reported on Form 8820, entered as a credit from a passthrough entity.

13AA Form 8830 - Enhanced oil recovery credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AA represent the Enhanced Oil Recovery Credit allocable to the taxpayer. This credit is reported on Form 8830, entered as a credit from a passthrough entity.

13AB Form 8835 Part II - Renewable electricity production credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AB represents the amount of the Renewable Electricity Production Credit allocable to the taxpayer. Report this credit on Form 8835, entered as a credit from a passthrough entity.

You'll first need to complete Part I of Form 8835, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 8835 menu select Pass-Through Entity Renewal Energy Production Credits during 4-Year Period and enter the credit information.

13AC Form 8864 - Biodiesel, renewable diesel, or sustainable aviation fuels credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AC represents the amount of the Biodiesel, Renewable Diesel, or Sustainable Aviation Fuels Credit allocable to the taxpayer. Report this credit on Form 8864, entered as a credit from a passthrough entity.

The corporation should have provided additional information on an attached statement. If the amount being passed through is for the small agri-biodiesel producer credit, in the Form 8864 menu enter the credit information under Credit from Pass-Through Entities - Diesel. If the amount being passed through is for the sustainable aviation fuels credit, enter the information under Credit from Pass-Through Entities - SAF.

13AD Form 8874 - New markets credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AD represents the amount of the New Markets Credit allocable to the taxpayer. Report this amount on Form 8874.

The corporation should have provided additional information on an attached statement. You'll need to enter information about the qualified Community Development Entity. After entering this information, from the Form 8874 menu select Credit from Pass-Through Entities and enter the credit information.

13AE Form 8881 Part I - Credit for small employer pension plan startup costs - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AE represents the Credit for Small Employer Pension Plan Startup Costs allocable to the taxpayer. Report this amount on Form 8881. In the Form 8881 menu select Credit from Pass-Through Entities (Part I Pension Plan Startup) and enter the credit information.

13AF Form 8881 Part II - Credit for small employer auto-enrollment - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AF represents the Small Employer Auto-Enrollment Credit allocable to the taxpayer. Report this amount on Form 8881 Part II. In the Form 8881 menu select Credit from Pass-Through Entities (Part II Pension Auto Enrollment) and enter the credit information.

13AG Form 8881 Part III - Credit for military spouse participation - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AG represents the Military Spouse Participation Credit allocable to the taxpayer. Report this amount on Form 8881 Part III. In the Form 8881 menu select Credit from Pass-Through Entities (Part III Military Spouse) and enter the credit information.

13AH Form 8882 - Credit for employer-provided childcare facilities and services - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AH represents the Credit for Employer-Provided Childcare Facilities and Services allocable to the taxpayer. Report this amount on Form 8882. In the Form 8882 menu select Credit from Pass-Through Entities and enter the credit information.

13AI Form 8896 - Low sulfur diesel fuel production credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AB represents the Low Sulfur Diesel Fuel Production Credit allocable to the taxpayer. In the Form 8896 menu select Credit from Pass-Through Entities and enter the credit information.

13AJ Form 8900 - Qualified railroad track maintenance credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AJ represents the Qualified Railroad Track Maintenance Credit allocable to the taxpayer. Report this amount on Form 8900. In the Form 8900 menu, select Credit from Pass-Through Entities and enter the credit information.

13AK Form 8904 - Credit for oil and gas production from marginal wells - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AK represents the Credit for Oil and Gas Production From Marginal Wells allocable to the taxpayer. Report this amount on Form 8904. In the Form 8904 menu, select Credit from Pass-Through Entities and enter the credit information.

13AL Form 8906 - Distilled spirits credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AL represent the Distilled Spirits Credit allocable to the taxpayer. Report this amount on Form 8906. In the Form 8906 menu, select Credit from Pass-Through Entities and enter the credit information.

13AM Form 8908 - Energy efficient home credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AM represent the Energy Efficient Home Credit allocable to the taxpayer. Report this amount on Form 8908. In the Form 8908 menu, select Credit from Pass-Through Entities and enter the credit information.

13AN Form 8910 - Alternative Motor Vehicle Credit - (Expired after tax year 2022). An amount reported in Box 13 with code AN represents the amount of the Alternative Motor Vehicle Credit allocable to the taxpayer. For tax years 2022 and prior, report this amount on Form 8910.

13AO Form 8911 - Alternative fuel vehicle refueling property credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AO represents the Alternative Fuel Vehicle Refueling Property Credit allocable to the taxpayer. Report this amount on Form 8911. In the Form 8911 menu, select Credit from Pass-Through Entities and enter the credit information.

13AP Form 8912 - Clean renewable energy bond credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AP represents the amount of the Clean Renewable Energy Bond Credit allocable to the taxpayer. Report this amount on Form 8912. In the Form 8912 menu, select Credit from Pass-Through Entities Not on Form 1097-BTC and enter the credit information.

13AQ Form 8912 - New clean renewable energy bond credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AQ represents the New Clean Renewable Energy Bond Credit allocable to the taxpayer. Report this amount on Form 8912. In the Form 8912 menu, select Credit from Pass-Through Entities Not on Form 1097-BTC and enter the credit information.

13AR Form 8912 - Qualified energy conservation bond credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AR represents the Qualified Energy Conservation Bond Credit allocable to the taxpayer. Report this amount on Form 8912. In the Form 8912 menu, select Credit from Pass-Through Entities Not on Form 1097-BTC and enter the credit information.

13AS Form 8912 - Qualified zone academy bond credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AS represents the Qualified Zone Academy Bond Credit allocable to the taxpayer. Report this amount on Form 8912. In the Form 8912 menu, select Credit from Pass-Through Entities Not on Form 1097-BTC and enter the credit information.

13AT Form 8912 - Qualified school construction bond credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AT represents the Qualified School Construction Bond Credit allocable to the taxpayer. Report this amount on Form 8912. In the Form 8912 menu, select Credit from Pass-Through Entities Not on Form 1097-BTC and enter the credit information.

13AU Form 8912 - Build America bond credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AU represent the Build America Bond Credit allocable to the taxpayer. Report this amount on Form 8912. In the Form 8912 menu, select Credit from Pass-Through Entities Not on Form 1097-BTC and enter the credit information.

13AV Form 8932 - Credit for employer differential wage payments - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AV represents the Credit for Employer Differential Wage Payments allocable to the taxpayer. Report this amount on Form 8932. In the Form 8932 menu, select Credit from Pass-Through Entities and enter the credit information.

13AW Form 8933 - Carbon oxide sequestration credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AW represents the amount of the Carbon Oxide Sequestration Credit allocable to the taxpayer. Report this amount on Form 8933, entered as a credit from a passthrough entity.

You'll first need to complete Part I of Form 8933, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 8933 menu select Credit from Pass-Through Entities and enter the credit information.

13AX Form 8933 - Carbon oxide sequestration credit recapture - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AX represents the Carbon Oxide Sequestration Credit Recapture allocable to the taxpayer. Report this credit on Form 8933 Part III line 8. (Prior to tax year 2025, it was reported on Form 8933 Part III line 7.)

This credit requires a copy of Schedule D (Form 8933) be attached to the tax return. If the return is being electronically filed, a PDF copy of Schedule D (Form 8933) can be attached under the Form 8933 menu.

You'll first need to complete Part I of Form 8933, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 8933 menu select Part III - Credit Calculations. Under the section Carbon Oxide Sequestration Credit Recaptured, enter the recaptured amount, then select CONTINUE.

In the PDF Entries page, select the button to open the PDF attachment window where you either drag and drop the PDF copy of Schedule D (Form 8933), or you can select the drop area to open a Windows File Explorer window to locate and attach the PDF.

13AY Form 8936 Part II - New clean vehicle credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AY represent the amount of the New Clean Vehicle Credit allocable to the taxpayer. Report this amount on Form 8936 Part II.

In the Form 8936 menu you'll need to enter prior year information about the taxpayer and indicate the taxpayer's participation in the credit activity, whether passive or nonpassive. When finished, select CONTINUE, and in the Form 8936 menu select New Clean Vehicle Credit from Pass-Through and enter the credit information.

13AZ Form 8936 Part V - Qualified commercial clean vehicle credit - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code AZ represents the amount of the qualified commercial clean vehicle credit allocable to the taxpayer. Report this amount on Form 8936, Part V.

In the Form 8936 menu you'll need to enter prior year information about the taxpayer and indicate the taxpayer's participation in the credit activity, whether passive or nonpassive. When finished, select CONTINUE, and in the Form 8936 menu select Commercial Clean Vehicle Credit from Pass-Through and enter the credit information.

13BA Form 8941 - Credit for small employer health insurance premiums - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code BA represents the Credit for Small Employer Health Insurance Premiums allocable to the taxpayer. Report this amount on Form 8941. In the Form 8941 menu, select Credit from Pass-Through Entities and enter the credit information.

13BB Form 8994 - Employer credit for paid family and medical leave - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code BB represents the Employer Credit for Paid Family and Medical Leave allocable to the taxpayer. Report on Form 8994.

You'll first need to complete Part I of Form 8994 with information about the corporation's family and medical leave policy, checking the question check boxes, entering the percentage required under the corporation's written policy, and indicate the taxpayer's participation in the credit activity, whether passive or nonpassive. When finished with Part I, select CONTINUE, then select Credit from Pass-Through Entities and enter the credit information.

13BC Eligible credits from transferor(s) under section 6418 - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code BC represents the amount the taxpayer has received as a transferee under section 6418. The corporation should have provided a statement attached to Schedule K-1 identifying the type of credit and any other information the taxpayer needs for their tax return. Report the credit on the appropriate form.

13ZZ Other credits - The amount entered is for reference purposes only and does not carry to any form. An amount reported in Box 13 with code ZZ is a credit other than codes A through BC. The corporation should have provided information about the credit. Report the credit on the appropriate form.

14 - International Transactions

Is Schedule K-3 attached? - Select Yes or No as appropriate.

15 - Alternative Minimum Tax Items

15A Post 1986 depreciation adjustment - This amount represents the taxpayer's tax-exempt interest income. This amount will automatically flow to line 2l of Form 6251.

15B Adjusted gain or loss - This amount represents the taxpayer's adjusted gain or loss. This amount will automatically flow to line 2k of Form 6251.

15C Depletion (other than oil & gas) - This amount represents the taxpayer's depletion adjustment. This amount will automatically flow to line 2d of Form 6251.

15D Oil, gas & geothermal properties - gross income
15E Oil, gas & geothermal properties - deductions - The amounts entered are for reference purposes only and do not carry to Form 6251. The amounts reported on line 15 with codes D and E include only the gross income (code D) from, and the deductions (code E) allocable to oil, gas, and geothermal properties included in Box 1 of Schedule K-1. The corporation should have attached a statement that shows any income from, or deductions allocable to, such properties that are included in boxes 2 through 12, 16, and 17 of Schedule K-1. Use these amounts and any other reported amounts on an attached statement to determine the net amount to report on Form 6251. In the Form 6251 menu, enter the appropriate amount under Intangible drilling costs preference.

15F Other AMT items - An amount reported in Box 15 using code F should be explained on a statement attached to Schedule K-1. Report on the appropriate line on Form 6251.

16 - Items Affecting Shareholder Basis

16A Tax-exempt interest income - The amount entered carries to Form 1040 line 2a as well as Form 7203 line 3k.

16B Other tax-exempt income - The amount entered carries to Form 7203 line 3k. This amount isn't reported on Form 1040.

16C Nondeductible expenses - The amount entered carries to Form 7203 line 8a. This amount isn't reported on Form 1040.

16D Distributions - The amount entered carries to Form 7203 line 6. This amount represents distributions of money or property not reported on Form 1099-DIV. If the amount distributed exceeds the taxpayer's stock basis, the excess is treated as a capital gain from the sale or exchange of property and is reported on Form 8949.

16E Repayment of loans from shareholders - The amount entered is for reference purposes only and does not carry to any form. This amount represents the principal portion of the repayment of a shareholder loan and is reported in Part II of Form 7203. In the Form 7203 menu, select Part II. Shareholder Debt Basis, then enter the amount under Principal portion of debt repayment. If the taxpayer has more than one loan, be sure to enter the repayment under the loan to which it applies.

16F Foreign taxes paid or accrued - The amount entered is for reference purposes only and does not carry to any form. It is reported on Form 7203. (Do not use this amount to complete Form 1116; use Schedule K-3 to complete Form 1116.)

17 - Other Information

17A Investment income - The amount entered is for informational purposes and does not carry to any form. The amount reported in Box 17 with code A is the taxpayer's share of investment income (interest, dividends, etc.) from the corporation. This income should have been recognized elsewhere on this K-1 in the Income items and will flow from there to Form 4952 line 4a.

17B Investment expenses - The amount reported in Box 17 with code B will flow to line 5 of Form 4952. Investment expenses are allowed deductions, other than interest expense, directly connected with the production of investment income.

17C Form 3468 - Qualified rehabilitation expenditures (other than rental real estate) - The amount entered is for reference purposes only and does not carry to any form. The corporation should have included with the Schedule K-1 a statement with the information you need to complete Form 3468, Investment Credit. If the S corporation is reporting expenditures from more than one activity, the attached statement will separately identify the expenditures.

(Note that the taxpayer's share of qualified rehabilitation expenditures from property related to rental real estate activities is reported in Box 13 with code C.)

17D Form 3468 - Basis of energy property - The amount entered is for reference purposes only and does not carry to any form. The corporation should have included with the Schedule K-1 a statement with the information you need to complete the applicable energy credit in Part VI of Form 3468. (Part VI has multiple sections for different credits, so see the Instructions for Form 3468 for details on how to complete the applicable section.)

17E Form 8611 - Recapture of low-income housing credit section 42(j)(5) - The amount entered is for reference purposes only and does not carry to any form. Complete Form 8611. In the "Question fields" section, do the following:

• Select Yes to the question Is the recapture passed from a flow through entity?
• Select Yes to the question Is the flow through entity a Sect 42(j) (5) partnership?
• Enter the amount under Recapture amount from flow-through entity.

17F Form 8611 - Recapture of low-income housing credit (other) - The amount entered is for reference purposes only and does not carry to any form. Complete Form 8611. In the "Question fields" section, do the following:

• Select Yes to the question Is the recapture passed from a flow through entity?
• Select No to the question Is the flow through entity a Sect 42(j) (5) partnership?
• Enter the amount under Recapture amount from flow-through entity.

17G Form 4255 - Recapture of investment credit - The amount entered is for reference purposes only and does not carry to any form. The corporation should have included with the Schedule K-1 a statement with the information you need to calculate the recapture tax on Form 4255.

17H Recapture of other credits - The amount entered is for reference purposes only and does not carry to any form. The corporation should have included with the Schedule K-1 a statement with the information you need to calculate the recapture amount on the form to which it relates.

17I Look-back interest - completed long-term contracts - The amount entered is for reference purposes only and does not carry to any form. The corporation should have included with the Schedule K-1 a statement with the information you need to complete Form 8697. If the taxpayer owes, enter the amount owed under Long-Term contracts interest computation under the Look-Back Method (8697) in the Other Additional Taxes menu.

17J Look-back interest - income forecast method - The amount entered is for reference purposes only and does not carry to any form. The corporation should have included with the Schedule K-1 a statement with the information you need to complete Form 8866. If the taxpayer owes, enter the amount owed under Interest computation under the Look-Back Method (8866) in the Other Additional Taxes menu.

17K Dispositions of property with section 179 deductions - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code K is the taxpayer's share of gain or loss on the sale, exchange, or other disposition of property for which a section 179 expense deduction was passed through to the taxpayer-shareholder with code K.

You will need to complete Form 4797 for the disposition, and the corporation should have included with the Schedule K-1 a statement with the information you need, i.e., a description of the property, the dates of acquisition and disposal, the taxpayer's share of the cost basis and selling price, and the taxpayer's share of depreciation allowed or allowable and section 179 deduction. (In the Form 4797 menu, the amount to enter as Depreciation Allowed equals the sum of the taxpayer's share of depreciation allowed and section 179 deduction, reduced by any unused section 179 deduction carryover.)

17L Recapture of section 179 deduction - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code L is the taxpayer's share of any recapture of section 179 expense deduction if business use of any property for which the section 179 expense deduction was passed through to shareholders dropped to 50% or less before the end of the recapture period. This amount needs to be entered in the Recapture Under Section 179 (Part IV) field in the Form 4797 Other Data menu.

17M Section 453(1)(3) information - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code M is needed to figure the interest due under section 453(l)(3) with respect to the disposition of certain timeshares and residential lots on the installment method.

See section 453(l) for information on how to compute the interest due and enter the result in the Other Additional Taxes menu under Interest on tax due on installment income from sale of lots & timeshares.

17N Section 453A(c) information - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code N is needed to figure the interest charge under section 453A(c) with respect to certain installment sales. The corporation should have included with the Schedule K-1 a statement with the information you need to compute the interest.

See Publication 537 for information on how to compute the interest due and enter the result in the Other Additional Taxes menu under Interest on deferred tax on gain from installment sales over $150,000.

17O Section 1260(b) information - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code O is needed to figure the interest due under section 1260(b). The corporation should have included with the Schedule K-1 a statement with the information you need to compute the interest.

See section 1260(b) for details on how to figure the interest and enter the result in the Other Additional Taxes menu under Section 1260(b) - Interest charge on deferral of gain.

17P Interest allocable to production expenditures - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code P is needed to figure interest required to be capitalized under section 263A for production expenditures.

See Regulations sections 1.263A-8 through 1.263A-15 for details on the calculation.

17Q Capital construction fund (CCF) nonqualified withdrawals - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code Q is the taxpayer's share of nonqualified withdrawals from a CCF. These withdrawals are taxed separately from your other gross income at the highest marginal ordinary income or capital gains tax rate.

See IRS Publication 595, Capital Construction Fund for Commercial Fishers for more information about nonqualified withdrawals from a CCF. You'll need to compute tax and interest for the nonqualified withdrawal and attach a statement to the tax return showing the computation. Enter the computed amount in the Other Additional Taxes menu under Any other tax with "CCF" as the description.

17R Depletion information - oil and gas - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code R is the taxpayer's share of gross income from the property, share of production for the tax year, and other information needed to figure their depletion deduction for oil and gas wells. The corporation should have included with the Schedule K-1 a statement with the information showing the taxpayer's proportionate share of the adjusted basis of each corporate oil or gas property.

Enter the depletion deduction in Part I of Form 7203 under "Depletion for oil and gas", however do not enter more than the taxpayer's adjusted basis in the property.

17U Net investment income - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code U is information you may need to determine the taxpayer's net investment income tax (NIIT) under section 1411. NIIT is calculated on Form 8960. See the IRS information about the NIIT here to determine if the taxpayer is subject to the NIIT, and also the Form 8960 instructions here.

If the taxpayer is subject to the NIIT and some of the corporation's investment income is derived from a controlled foreign corporation (CFC) or a passive foreign investment company (PFIC), you'll need to determine if the CFC or PFIC is being treated as a qualified electing fund (QEF) and whether the taxpayer, the corporation, or a subsidiary pass-through entity has made an election under Regulations section 1.1411-10(g) with respect to the CFC or QEF. If such an election has been made, the information provide in Box 17 with code U may not be needed to complete Form 8960 since the income has been reported elsewhere on Schedules K-1 and K-3.

17V Section 199A information - See the information provided separately on this page.

17AA Excess taxable income - The amount entered is for reference purposes only and does not carry to any form. If the S corporation is required to file Form 8990, Limitation on Business Interest Expense Under Section 163(j), it may determine it has excess taxable income. If the taxpayer is required to file Form 8990, report this amount of excess taxable income in column (c) of Form 8990, Schedule B, line 45.

The taxpayer does not need to file Form 8990 if they meet the definition of a small business taxpayer (average annual gross receipts of $30 million or less for the 3 prior tax years) or their interest expense is from one of several excepted businesses. For more information, see the Instructions for Form 8990 here.

17AB Excess business interest income - The amount entered is for reference purposes only and does not carry to any form. If the S corporation is required to file Form 8990, Limitation on Business Interest Expense Under Section 163(j), it may determine it has excess business interest income. If the taxpayer is required to file Form 8990, report this amount of excess taxable income in column (d) of Form 8990, Schedule B, line 45.

The taxpayer does not need to file Form 8990 if they meet the definition of a small business taxpayer (average annual gross receipts of $30 million or less for the 3 prior tax years) or their interest expense is from one of several excepted businesses. For more information, see the Instructions for Form 8990 here.

17AC Gross receipts for section 448(c) - The amount entered is for reference purposes only and does not carry to any form. If the taxpayer is required to file Form 8990, you will use this amount to figure the business interest expense the taxpayer can deduct.

The taxpayer does not need to file Form 8990 if they meet the definition of a small business taxpayer (average annual gross receipts of $30 million or less for the 3 prior tax years) or their interest expense is from one of several excepted businesses. For more information, see the Instructions for Form 8990 here.

17AJ Excess business loss limitation - The amount entered is for reference purposes only and does not carry to any form. If the corporation has deductions attributable to a business activity, it will provide a statement showing the aggregate gross income or gain and the aggregate deductions from the business activity that you will need to figure the taxpayer's excess business loss limitation, if any, on Form 461, Limitation on Business Losses.

Code section 461(l) limits the amount of losses from the trades or businesses of a noncorporate taxpayer that the taxpayer can claim each year. An excess business loss can't be deducted in the current year but is treated as a net
operating loss (NOL) carryover for subsequent years.

See the "Who must file" and "Definitions" sections of the Form 461 instructions here to determine if the taxpayer is required to file Form 461. If they aren't required to file Form 461, this amount can be ignored.

17AN Farming and fishing income - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code AN is reported as an item of information on Schedule E, Part V, line 42. (The amount reported on line 42 is used when determining if the taxpayer is a qualified farmer subject to special rules for estimated taxes.)

In TaxSlayer ProWeb, this line can only be gotten to if the taxpayer also has rental activity reported in Schedule E, Part I, otherwise it isn't supported.

17AP Inversion gain - The amount entered is for reference purposes only and does not carry to any form. The amount reported in Box 17 with code AP represents the corporation's inversion gain. A corporate inversion is a transaction in which a U.S. based multinational restructures so that the U.S. parent is replaced by a foreign parent, in order to avoid U.S. taxes.

The inversion gain is reported in income elsewhere on Schedule K-1, but it is also reported as an information item in Box 17 under code AP to assist the taxpayer in completing their tax return. Several points should be noted about the taxpayer's inversion gain:

• It can't be greater than the taxpayer's taxable income and AMT income;
• It isn't taken into account in figuring the net operating loss (NOL) for the tax year or the NOL that can be carried over to each tax year;
• It may limit the taxpayer's credits;
• For the foreign tax credit, it is treated as income from sources within the United States.

17AS Form 3468 Part II - Qualifying advanced coal project property and qualifying gasification project property - The amount entered is for reference purposes only and does not carry to any form. The corporation should have included with the Schedule K-1 a statement with the information you need to complete Form 3468.

• For qualified investment in qualifying advanced coal project property, use the amounts in Box 17 with code AU to figure the amounts to report on Form 3468, Part II, Section A, lines 1a, 2a, and 3a.
• For qualified investment in qualifying gasification, use the amounts in Box 17 with code AU to figure the amounts to report on Form 3468, Part II, Section B, lines 4a and 5a.

You'll first need to complete Part I of Form 3468, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 3468 menu select Qualifying Advanced Coal and Gasification Project Credit, then again Qualifying Advanced Coal and Gasification Project Credit, and enter the information in the appropriate fields under the appropriate section, whether Qualifying Advanced Coal Project Credit Under Section 48A or Qualifying Gasification Project Credit under Section 48B.

17AT Form 3468 Part III - Qualifying advanced energy project property - The amount entered is for reference purposes only and does not carry to any form. The corporation should have included with the Schedule K-1 a statement with the information you need to complete Form 3468.

You'll first need to complete Part I of Form 3468, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 3468 menu select Qualifying Advanced Energy Project Credit Under Section 48C, then again Qualifying Advanced Energy Project Credit Under Section 48C, and enter the information provided by the corporation.

17AU Form 3468 Part IV - Advanced manufacturing investment property - The amount entered is for reference purposes only and does not carry to any form. The corporation should have included with the Schedule K-1 a statement with the information you need to complete Form 3468.

You'll first need to complete Part I of Form 3468, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 3468 menu select Advanced Manufacturing Investment Credit Under Section 48D, then again Advanced Manufacturing Investment Credit Under Section 48D, and enter the information provided by the corporation.

17AV Form 3468 Part V - Clean electricity investment - The amount entered is for reference purposes only and does not carry to any form. The corporation should have included with the Schedule K-1 a statement with the information you need to complete Form 3468.

You'll first need to complete Part I of Form 3468, entering the detailed information about the facility that the S corporation should have provided to the taxpayer-shareholder. After completing Part I, in the Form 3468 menu select Clean Electricity Investment Credit Under Section 48E, then again Clean Electricity Investment Credit Under Section 48E, and enter the information provided by the corporation.

17AW Form 8886 - Reportable transactions - The amount entered is for reference purposes only and does not carry to any form. The information reported in Box 17 with code AW is needed if the taxpayer needs to complete a disclosure statement for reportable transactions in which the corporation participates.

If the corporation participates in a transaction that must be disclosed on Form 8886, Reportable Transaction Disclosure Statement, both the taxpayer and the corporation may be required to file Form 8886 for the transaction. The determination of whether the taxpayer is required to disclose a transaction of the corporation is based on the category(ies) under which the transaction qualifies for disclosure and is determined by the taxpayer and the corporation.

The taxpayer may have to pay a penalty if they are required to file Form 8886 and don't do so. See the Instructions for Form 8886 here to determine if the taxpayer needs to file Form 8886 with their tax return. Form 8886 is not available in TaxSlayer ProWeb. It can be completed and printed using the fill-in copy at the IRS website here. Additionally, a copy must be separately mailed or faxed to the IRS per the instructions.

Line 17BA Domestic research or experimental expenditures - The One Big Beautiful Bill Act (P.L. 119-21) added section 174A, which pertains to domestic research and experimental expenditures. Section 174A(a) allows a deduction for domestic research and experimental expenditures paid or incurred during the taxable year for taxable years beginning after December 31, 2024.

Section 174A(f)(1) allows an election by small business taxpayers to retroactively claim a deduction for amounts expended or incurred after December 31, 2021, and before January 1, 2025. Section 174A(f)(2) allows an election to deduct certain unamortized amounts paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025.

Section 174A(c) allows an election to charge research and experimental expenditures to a capital account. Under section 174A(c), you may elect to charge such expenditures to a capital account rather than deducting them and be allowed an amortization deduction of such expenditures proportionately over a period of not less than 60 months.

We await guidance from the IRS where this is to be reported in the individual income tax return.

Line 17ZZ Other information - Box 17, Code ZZ are other items of information not found elsewhere on the Schedule K-1 (Form 1120-S). The taxpayer should have received instructions from the corporation regarding the items with this code.

17V - Section 199A Information

＋Add Section 199A Information

Trade or business TIN - Enter the S corporation's EIN.

Trade or business name - Enter the S corporation's name.

Trade or business description - Enter a general description of the business.

Section 199A Income - The amount reported in Box 17 with code V is Qualified Business Income (QBI). This amount will automatically pull to Form 8995 or Form 8995-A to be used in the calculation of QBID.

Section 199A W-2 Wages - Section 199A W-2 wages are the wages paid by the corporation that were reported to the Social Security Administration on a W-2. The amount entered is used in the calculation of the QBID for taxpayers above the taxable income thresholds.

Section 199A Unadjusted Basis - This amount represents the unadjusted basis of qualified property held by the corporation. The amount entered is used in the calculation of the QBID for taxpayers above the taxable income thresholds.

Section 199A REIT Dividends - This amount represents the REIT dividends received by the corporation. This amount is used in the calculation of the QBID.

Section 199A PTP Income - This amount represents the PTP income received by the corporation. This amount is used in the calculation of the QBID.

Is this a specified service business? - Answer Yes or No as appropriate. If you aren't sure if this is a specified service trade or business, see the QBID FAQ here for more information.

Qualified payments from Form 1099-PATR, Box 7 - Enter the amount, if any.

Wages from qualified payments - Enter the amount if any.