Below are solutions to frequently asked questions about entering Form 3800, General Business Credits.
New for Form 3800 for tax year 2023:
- If you intend to make an elective payment election or a transfer election on Form 3800, you must complete a pre-filing registration before you file your tax return. See here for more information.
- Elective payment election: Certain applicable entities and electing taxpayers can elect to treat certain IRA 2022 business credits, or CHIPS 2022 credits as elective payments. Any overpayments may result in refunds.
- Transferring credits: Taxpayers may make an election to transfer all or a portion of certain IRA 2022 credits.
- See IRS instructions for 3800 for more information.
1040 filers using the new Credit transferred or Gross elective payment fields will receive Critical Diagnostic ref 60077 until the calculations are ready and may want to file extensions for the upcoming 4/15 deadline.
Starting in tax year 2023:
The 3800 form has been restructured to contain 8 pages:
| Page | Content | Additional details |
|---|---|---|
| 1 | Part I: Current Year Credits Not Allowed Against Tentative Minimum Tax | |
| 1 | Part II: Allowable Credit | |
| 2 | Part II: Allowable Credit continued | |
| 3 | Part III: Current Year General Business Credits (GBCs) | Current year credits from Forms: 3468 Part II, 7207, 6765, 3468 Part III, 8826, 8835 Part II, 7210, 7720, 8874, 8881 Part 1, 8882, 8864, 8896, 8906. 3468 Part IV, 8908, 8910, 8911, 8830, 7213 Part II, 3468 Part V, 8932, 8933, 8936 Part II, 8936 Part V, 8904, 7213 Part I, 8881 Part II, 8881 Part III, 8864 line 8, other credits. |
| 4 | Part III: Current Year General Business Credits (GBCs) continued | Current year credits from Forms: 8844, 3468 Part VI, 5884, 6478, 8586. 8835 Part II, 8846, 8900, 8941, 6765 ESB credit, 8994, 3468 Part VII, other specified credits. |
| 5 | Part IV: Carryovers of General Business Credits (GBCs) or Eligible Small Business Credits (ESBCs) | Credits carried over to tax year 2023 from: Form 3468 Part II, 7207, 6765, 3468 Part III, 8826, 8835 Part II, 7210, 8820, 8874, 8881 Part I, 8882, 8864, 8896, 8906, 3468 Part IV, 8908, 8910, 8911 Part II, 8830, 7213 Part II, 3468 Part V, 8932, 8933, 8936 Part II, 8936 Part V, 8904, 7213 Part I, 8881 Part II, 8881 Part III, 8864, other. Credits for which only carryfowards are allowed: Form 5884-A, 8586, 8845, 8907, 8909, 8923, 8834, 8931, 1065-B, 5884, 6478, 8846 |
| 6 | Part IV: Carryovers of General Business Credits (GBCs) or Eligible Small Business Credits (ESBCs) continued | Credits carried over to tax year 2023 from: Form 8900, 5884-A 5884-B, 8847, 8861, 8884, 8942. Specified credits from: 3468 Part VI, 5884, 6478, 8586, 8835, 8846, 8900, 8941, 6765 ESB, 8994, 3468 Part VII. |
| 7 | Part V: Breakdown of Aggregate Amounts on Part III for Facility-by-Facility, Multiple Pass-Through Entities, etc. | |
| 8 | Part VI: Breakdown of Aggregate Amounts in Part IV |
Where do I enter general business credits for an individual return?
Most general business credits can be entered directly and aggregated from passthrough K-1 inputs. To find input sources for a particular credit:
- Using the table above determine if the credit is listed on page 3 or page 4 of the 3800.
- Go to the Forms tab.
- Open Form 3800 to the correct page.
- If the 3800 is not showing on the Form list make sure you check the Show all checkbox.
- Locate the line for the credit you need.
- Right-click in the amount column of that line.
- Select Jump-to-input.
- Enter the credit amounts.
Critical Diagnostic ref 60077:
For tax year 2023 returns you may receive the following diagnostic:
- Form 3800: development is not yet complete with regards to transfer elections and elective payment elections, one or more of which is present in the General Business & Vehicle Credits input screen. Please do not file the return at this time. This diagnostic will be removed once development has been completed. (ref #60077)
This is generated when you use the new Credit transferred or Gross elective payment fields for the credits. The calculation for these fields is still in development pending a future release.
To enter business credit carryforwards and carrybacks:
- Go to Screen 34, General Business and Vehicle Credits.
- Select the Carryovers/Misc Info link.
- From the sections select Business Credit Carryforwards and Carrybacks (3800)
- In the table for Credit Type locate the credit form.
- Complete the Year and amounts for the carryforward or carryback.
Where do I enter general business credits for an Partnership or S Corporation return?
The Form 3800 itself is only required when the entity is making an Electing Payment or Credit Transfer. For most entities the credit amounts will pass through to the K-1's to be entered on the 1040 return. The Form 3800 is still in development for 1065 returns.
For Partnership and S Corporation returns, most credits are entered under the Schedule K Credits screen. Credits will flow through to the K-1 for the shareholders and partners. Credits that are eligible to use the new Credit Transferred and Gross Elective Payments will have applicable fields on the credit screen. Using these fields will flow the credit to the 3800.
