This article will assist you with generating Form 8820, Orphan Drug Credit, in the Individual return.
Most provisions for the orphan drug credit are expired.
To enter a credit carryover from a prior year:
- Go to Input Return ⮕ Credits ⮕ General Business and Vehicle Cr.
- Scroll down to the Prior Year Unallowed Credits section.
- Locate the grid under the Other Passive Credit Carryovers subsection.
- For the Credit Type, select Orphan drug (8820).
- This is under the Form 3800, Part III, Line 1 Credits dropdown.
- Enter the applicable amount in the General Business Credit column.
- This credit will flow to Form 3800 after passive activity limits have been applied.