For tax year 2019, I received a Form 8986, Partner's Share of Adjustment(s) to Partnership-Related Item(s). The purpose of the form is to restate income and capital account amounts due to an accounting correction in a K-1 from tax year 2018.
My question: is TurboTax able to deal with this form? I searched the application for 8986 and 8978 but didn't find anything useful.
Thank you for reading my question.
Unfortunately, TurboTax simply does not support Form 8978.
To Paul95. How did you end up handling the 8986? I have just received one for Cheniere. Thx RLO
Hi RLO,
In my case, I was able to file Form 8978 with my 2019 return. Form 8978 allowed me to amend 2018 taxes without having to file a 1040-X.
I also found out that the IRS does not accept e-filed returns with Form 8978, so I was forced to mail it in. It took a little over 3 months for me to receive my refund.
Good luck!
Proceed with what? You might want to follow the procedure outlined by @Paul95
Hello, @Visgor
No, I did not. I am assuming I just put it in the mail to the IRS?
Thank you,
Teresa M.
You definitely could do that, however, where to get the IRS form to mail out? Is there an instruction on how to join it to the return?
Since it almost a sure bet that you are a non pass-through partner, you would file Form 8978.
So, I downloaded Form 8978 but where do I add the adjusted loss in my case (or income for others) onto the Turbotax return so that my tax bill is correctly computed? I realize I'll have to mail it in, but I am not sure where to make this adjustment on the main return so the total is correct.
Hi jenng,
I ended up using a paid preparer. She included the Form 8978 amount on 1040 line 12a, Tax. She checked box 3 on that line and indicated that the tax included the 8978 amount.
She also attached a copy of the "Qualified Dividends and Capital Gain Tax Worksheet" that gave every detail of how the line 12a amount was calculated.
Good luck! Like so many things IRS-related, this was to me an unnecessarily confusing exercise.