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.
Several caveats:
- 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 supported in TaxSlayer ProWeb 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 7207, Manufacturing Production
- 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 8904, Oil and Gas Production
- 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 8994, Employer Credit for Paid Family and Medical Leave
To access the general business credits in TaxSlayer ProWeb, from the Main Menu of tax return (From 1040) select:
- Federal Section
- Deductions
- Credits Menu
- Less Common Credits
- General Business Credit (3800)
- Must select Yes or No - Are you both (a) an "applicable corporation" within the meaning of IRC 59(k)(1) for the Corporate Alternative Minimum Tax (CAMT), and (b) and "applicable taxpayer" within the meaning of IRC 59A(e) for the Base Erosion Anti-Abuse Tax (BEAT)?
- Form 8582-CR, line 3 passive activity credits allowed for 2023 adjustment
- Form 8582-CR, line 24 passive activity credits allowed for 2023
- Form 8582-CR, line 33 passive activity credits allowed for 2023
-
Other Credit Carryforwards/Carrybacks
- Tax year in which the credit originated
- Pass-through entity EIN
- Credit carryforwards excluding eligible small business credits (ESBCs)
- Eligible small business credit carryforwards
- Type of Credit Activity
-
Other Specified Credits
- Tax year in which the credit originated
- Pass-through entity EIN
- Credit carryforwards excluding eligible small business credits (ESBCs)
- Eligible small business credit carryforwards
- Type of Credit Activity
Note: This is a guide to entering general business credits into the TaxSlayer Pro program. It is not intended as tax advice.
Additional Information:
Form 8582-CR Passive Activity Credit Limitations instructions (last revision Jan, 2012)