While the name is singular, the general business credit form consists of numerous credits that may be taken by an individual who qualifies for the credit. Credits are aggregated according to several criteria:
- Passive or nonpassive current year credits
- Credit carryforwards or carrybacks
Thus, depending on the number and categorization of the credits entered, multiple general business credit forms may be produced in the return. Credits received from a pass-through entity on a Schedule K-1 may also result in an additional general business credit form being produced.
- The general business credit is a nonrefundable credit, limited to the tax liability on the return. Unused credits are carried back one year (five years for oil and gas production from marginal wells) and carried forward a maximum of 20 years or until the taxpayer dies, whichever comes first.
- To ensure proper accounting, keep good records for each credit, including whether the credit was an eligible small business credit.
- When carrying a credit forward or back and the taxpayer's filing status changed between the two years, the allowable credit must be calculated differently. See the Form 3800 instructions if any of the following are true:
- The taxpayer filed as single in the credit year, but filed MFJ in the carryback or carryforward year;
- The taxpayer filed MFJ in the credit year, but filed MFJ with a different spouse in the carryback or carryforward year; or
- The taxpayer filed MFS in the credit year, but filed MFJ with the same spouse or a different spouse in the carryback or carryforward year
Current year general business credits consist of the following:
- Form 3468, Investment Credit
- Form 5884, Work Opportunity Credit
- Form 5884-A, Credits for Affected Disaster Area Employers
- Form 6478, Biofuel Producer Credit
- Form 6765, Credit for Increasing Research Activities
- Form 8586, Low-Income Housing Credit
- Form 8820, Orphan Drug Credit
- Form 8826, Disabled Access Credit
- Form 8830, Enhanced Oil Recovery Credit
- Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit
- Form 8844, Empowerment Zone Employment Credit
- Form 8845, Indian Employment Credit
- Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips
- Form 8864, Biodiesel and Renewable Diesel Fuels Credit
- Form 8874, New Markets Credit
- Form 8881, Credit for Small Employer Pension Plan Startup Costs
- Form 8882, Credit for Employer-Provided Childcare Facilities and Services
- Form 8896, Low Sulfur Diesel Fuel Production Credit
- Form 8900, Qualified Railroad Track Maintenance Credit
- Form 8906, Distilled Spirits Credit
- Form 8908, Energy Efficient Home Credit
- Form 8910, Alternative Motor Vehicle Credit
- Form 8911, Alternative Fuel Vehicle Refueling Property Credit
- Form 8923, Mine Rescue Team Training Credit
- Form 8933, Carbon Oxide Sequestration Credit
- Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit
- Form 8941, Credit for Small Employer Health Insurance Premiums
- Form 8994, Employer Credit for Paid Family and Medical Leave
To access the general business credits in TaxSlayer Pro, from the Main Menu of tax return (From 1040) select:
- Credits Menu
- General Business Credit (3800)
- Select Current Year General Business Credits to complete a credit form for the current year only.
- Select General Business Credit Carryforwards to enter a carryforward from a prior year.
- Select General Business Credit Carrybacks to enter a carryback from the following year. Note that a credit can't carry back to the year before it was created.
- Select Eligible Small Business Credit Carryforwards to enter a carryforward from a prior year from an eligible small business, that is, a sole proprietorship, a partnership, or a corporation whose stock isn't publicly traded.
- Select Passive Activity Credit Limitations to make entries on Form 8582-CR. This form is filed by taxpayers with either general business credits or the qualified plug-in electric and electric vehicle credit arising from passive activities. The form has two main purposes:
- to figure the amount of any passive activity credit for the current tax year;
- to make the election to increase the basis of credit property when the taxpayer has disposed of their interest in an activity.
Note: This is a guide to entering general business credits into the TaxSlayer Pro program. It is not intended as tax advice. For additional information, click the Additional Information links below.