TurboTax smart check wrong on Business ITC form 3468

[user17713795243]

Turbotax software is telling me I cannot efile and need to mail in my return because I need to fill out form 7220 for prevailing wage verification for claiming the solar low income bonus, but I qualify for the 7220 exception for system size being under one megawatt. I think Turbotax needs to look into this. 

[Colorado2025]

Im having the same issue. Turbotax should fix this ASAP.

[user17722284177]

I am experiencing the same issue. Intuit needs to address this.

Thanks,

[Turbbb3333]

also having this issue, the agent only mentions they will open ticket but recommended me to mail it for now. No workaround

[Colorado2025]

I bought TurboTax to be able to e-file. It is ridiculous that they are asking us to mail it in because of a bug in their software.

[Turbbb3333]

I've tried the FreeTaxUSA, and they has the same issue (lol they might copying each other?). But I did get a response from their custom service that they will fix the issue by the end of the march. So one can e-file in April. 

[TTuser4years]

I have the same problem. After hours and hours on the phone with "tax experts" still no solution. This year has really been a challenge to remain loyal to TT. No access to forms, return links not working and now this issue with 3468/7220. How hard can it be to make a decision matrix that will skip the 7220 form for projects LT 1 MW or meet the BOC requirement. Don't they use IF statements anymore? If I ever get through this I will rethink my choice for tax prep. My issue is over 3 week old now and I find that unacceptable problem resolution time.

[rsils]

I am having the same problem with the 3468/7220 that you all have discovered. Not happy that TTx hasn't fixed it yet, but happy to know that others have already reported the issue and hopefully it will eventually get solved. 

[JCH10]

Same issue---please fix it ASAP TT---we are not mailing in a giant package due to flaws in your software!

[andyoak]

I'm having the same problem. If I check "N/A" for line 8, it resets the credit to 6%.

I've spent hours the last 2 days on the phone with Turbotax support, and everyone simply keeps insisting that I have to select line 8a "prevailing wage applies" (which is clearly incorrect as it's N/A for <1mw systems). The agent seemed to agree with me based on the IRS info we were reviewing, but appears helpless to escalate it to someone who actually cares to fix it. I told him others would be contacting them with the same issue and they'd need to fix it at some point. It's really inexcusable to just ignore obvious issues.

It looks like I'll have to recover my payment to Intuit and switch to another product. But now I have to redo my entire tax return, which is a pain.

[Turbbb3333]

I contacted TurboTax, and they said they’re working on the issue but can’t guarantee a fix before April 15th. On the other hand, FreeTaxUSA said they expect to resolve it by this Saturday.

Given that, I’ll most likely go with FreeTaxUSA—even though I already paid full price for TurboTax through Amazon. It’s honestly very disappointing. I wish I hadn’t purchased it through Amazon, since I might have had a chance to get a refund otherwise.

[andyoak]

Thank you so much! I can't wait until 4/15 or later, I need the tax refund (I already paid TT so that I could review the actual forms before I filed).

I was told they don't give refunds. But I can have my credit card bank reverse it. If Amazon won't refund it, you should be able to do the same.

[JCH10]

 I think 3468 is correct, and you have to select b for question 8, which give the 30% credit and allows for the exemption from PWA with the last part of that sentence "...or 48e (d) (3) and (4) apply."  Poorly written but that's IRS style.  TurboTax's flaw is that answering question 8 with either (a) or (b) (both YES) then says we must file Form 7220 which TT does not support.  Answering (b) yes to question 8 should not trigger the 7220 requirement, since the 2nd part of the sentence brings in the <1MW (and other) exceptions.  So it's really the logic in their SmartCheck that needs fixed.  Even if I end up having to mail my return in, I wouldn't file form 7220 since the following statement is directly from the IRS website Instructions for Form 7220 (12/2025) | Internal Revenue Service

If you’re claiming the increased credit or deduction amounts and satisfy the BOC or the One Megawatt exception, you’re not required to file Form 7220. 

[andyoak]

But 48E(d)(3) and (4) simply specify that prevailing wage and apprenticeship requirements apply.
45(b)(6)(B)(i) contains the increased credit for small solar systems.

An Intuit agent on this forum advised another user to select line 8(d) "N/A," which aligns with everything else I've found.

[rsils]

hmmm, on Form 3468, I answered 7a Yes (<1MW solar system) and wasn't sure whether I should answer 8b Yes, or 8d Not applicable, but I was leaning to 8d Not applicable... both answers provided me with a 30% tax credit and both answers (incorrectly, I believe) triggered the 7220 filing requirement and hence the paper mailing requirement instead of electronic filing through the smart check process. If TTx doesn't correct this before 4/15 filing deadline, I guess we all have 3 choices: file via paper (w/ or w/o 7220; w/o 7220 is my choice), file for extension and hope TTx fixes this before 10/15, or use other software.