Section 48 Energy Investment credit and form 3800 doubling tax credit from form 3468

[user17729316907]

Copied the following from the Help section of Turbotax Premier for Mac regarding form 3468 and required links to form 3800. "If your K-1 reports Investment Credit from multiple facilities, you should not link that K-1 as there is no way to differentiate which credit originates from which facility. In this case, you will fill out Form 3468(s) manually without using links. To link from a K-1 Partnership or a K-1 S Corp, establish the link on the Additional Information worksheet of your K-1."

My K-1 S-Corp does have multiple facilities, so I followed the first and second sentences, and then get an error that I must link the forms as per sentence 3 above.  Correcting the error  doubles the credit because one "should not link that K-1..."

Can anyone explain the contradiction in the quoted help above?

[DaveF1006]

It depends. The IRS requires a separate Form 3468 for each facility or property generating a credit.

1. Since a single K-1 "Schedule K" line item usually lumps these credits together, TurboTax can't "auto-split" them into multiple 3468s. Thus, it tells you to do it manually. 
2. TurboTax has a "Check This Form" error trap. It sees an entry on Form 3800 (General Business Credit) or Form 3468 and "knows" there is a K-1 in your return. It forces a link to ensure the numbers match exactly to prevent math errors.
3. When you link it, the software pulls the total from the K-1, but because you also manually entered the data on the 3468s, it double-counts the credit. 

To satisfy the software’s need for a link without doubling your tax credit, you have to "zero out" the automated path. Try this workflow:

1. Keep your Manual 3468s: Ensure you have created the individual Form 3468s for each facility as required.
2. Go to the K-1 Entry Screen: Navigate to your S-Corp K-1 "Step-by-Step" interview.
3. Adjust the Credit Entry: When you reach the screen for "Statement Details" or where you enter the specific credit amount from your K-1 (usually Box 13 with a code), remove the dollar amount there.
4. Use the "Link" on the Worksheet: * Go to the K-1 Additional Information Worksheet (Forms Mode is easiest for this).
5. Link the K-1 to your manual 3468s.

Since the K-1 "source" now has $0 (because you removed it in step 3), the "link" will technically exist but will carry over a value of zero, leaving only your manual entries to populate the final 1040.

A "Forms Mode" Tip (Mac)

1. Since you are on the Desktop/Premier version, use Forms Mode (Command+R) to look at the Form 3800, Part III.
2. Check the "Source" column.

• If you see two lines for the same credit—one from "K-1 S-Corp" and one from "Form 3468"—you know the double-count is active.
• Delete the one originating directly from the K-1 input.

Why does the help text say "Do not link"?

The help text was likely written by a technical writer focusing on IRS compliance (the need for separate 3468s), whereas the "Error" you are seeing was written by a programmer focusing on data integrity (making sure K-1 totals match the 3800).

By manually entering the facility data on 3468 and zeroing out the "summary" line on the K-1, you satisfy both the IRS and TurboTax's error-checker.

[Curious15]

That worked.  Thanks so much.