Can TurboTax handle Form 8986?

[Paul95]

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.

[tagteam · Accepted solution]

Unfortunately, TurboTax simply does not support Form 8978.

[rlottsman]

To Paul95.  How did you end up handling the 8986?  I have just received one for Cheniere.  Thx RLO

[Paul95]

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!

[teresamorgan0301969]

Hello, @tagteam 

So how do I proceed? Any advice?

Thank you,

Teresa M. 

[tagteam]

Proceed with what? You might want to follow the procedure outlined by @Paul95 

[teresamorgan0301969]

Hello, @tagteam 

So I file by mail, got it. 

Thank you,

Teresa M. 

[Visgor]

Did you get the reply on how to enter form 8986?

[teresamorgan0301969]

Hello, @Visgor 

No, I did not. I am assuming I just put it in the mail to the IRS? 

Thank you,

Teresa M. 

[Visgor]

Hi @teresamorgan0301969,

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?

[tagteam]

Since it almost a sure bet that you are a non pass-through partner, you would file Form 8978.

[jenng]

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.

[Paul95]

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.

[jenng]

Thank you!