Unfortunately Turbo Tax automatically populates NO on box 29C of Schedule K. In the business interview section the user is not asked if the company qualifies as a safe harbor. There are 2 questions related to Alternative Minimum tax -- but this 3rd crucial question is not asked and the box is automatically populated with the answer NO. So that is an error in the software. The first question asks if it is an applicable corporation and the explian this link says "If the average adjusted financial statement income for the three prior years is $1 billion (or $100 million if a foreign-parent multinational group), the corporation is an applicable corporation"
If you answer NO then the next question asks if the corporation is currently applicable because of a prior year.
However if you answer YES to question the followup question changes to "Does the corporation meet the requirements of safe harbor".
On the face of form 1120 section K questions 29a to c the if then logic is documented and Turbo tax has it WRONG in the PROGRAM. A NO to 29A is presenting 29B instead of 29C - and it populates row 29C even though the question was never asked. A YES to 29A is presenting 29C it is supposed to show 29B and then based on that answer show 29C. And a NO to 29A is presenting 29B instead of 29C
The PROGRAM LOGIC IS WRONG FOR SCHEDULE K line 29A and NEEDS TO BE FIXED.
Tax form:
29 Corporate Alternative Minimum Tax:
a Was the corporation an applicable corporation under section 59(k)(1) in any prior tax year? . . . . . . . . . . .
If “Yes,” go to question 29b. If “No,” skip to question 29c.
b Is the corporation an applicable corporation under section 59(k)(1) in the current tax year because the corporation was an applicable corporation in the prior tax year? . . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” complete and attach Form 4626. If “No,” continue to question 29c.
c Does the corporation meet the requirements of the safe harbor method as provided under section 59(k)(3)(A) for the current tax
year? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If “No,” complete and attach Form 4626. If “Yes,” the corporation is not required to file Form 4626
