AnnetteB6
Expert Alumni

Get your taxes done using TurboTax

After researching this further using the IRS Instructions for Form 8936, there does not seem to be any guidance or provision in the instruction that allows for you to apply the limitation based on the previous year's filing status modified AGI limit.  It only allows you to use the previous year's modified AGI, but it must be under your current year's filing status limit.  

 

Take a look at the 2023 version of the IRS Form 8936 using the link below.  The top section labeled Part I is where it compares your current year modified AGI to your previous year modified AGI.  The lowest of these is reported on line 5.  

 

Then, Part II just applies the filing status limitation on the amount shown on line 5.  Applying the limitation to the previous year's filing status is not an option.  

 

2023 Form 8936

 

@JimKerwood 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"