MA Schedule CMS - Research Credit

[KARice]

Hi - I posted this issue a few years ago and was unable to find an answer.  I think it is a hard bug in the software.  Why isn't it fixed already?  I ended up having to file the MA return on the MA Tax Connector website in order to take the Research Credit carryover.  Again this year (2025), I am unable to use the Research Credit carryforward.  Here is the issue... 

I will not have a 2025 Research Credit, but I do have Research Credit carryovers from prior years that I want to use for 2025.  I enter the prior years' credits on Schedule CMS.  In the last row that I enter, the 1a field "Credit Type" turns red.  The error shows as "Credit type Schedule RC should be completed to claim the Research Credit since credit type REARCH and related credit information has to be entered on Schedule CMS".  Sooo I open the Schedule RC, put all 0s, but this does not work.  The field is still red and shows the error. 

I have tried entering numbers in the different fields on Sch RC.   I have tried combining all years carryovers (2016-2022) and entering just one row in Schedule CMS.  I have tried deleting both forms, then adding the Schedule RC first, entering 0s, then adding Schedule CMS.  Nothing has worked.  I asked AI and tried all their suggestions...nothing has worked.  

Has anyone run into this and is there a workaround?  Or am I going to have to reenter all the information to MA Tax Connector and file that way.  Thanks for any help.  PS This is Turbotax Desktop.

[KARice]

THIS IS A PROGRAMMING ERROR ON THE MASSACHUSETTS SCHEDULE CMS. 

I HAVE CALLED TURBOTAX MULTIPLE TIMES ABOUT THIS BUT IT HAS NOT BEEN FIXED.  WHO DO I CALL OR EMAIL?  HOW CAN I HAVE THIS CORRECTED???  

[LenaH]

Each corporation who uses a Massachusetts research credit must complete Schedule RC as part of their return, so even if the current year credit is a carryover from a prior year with no new qualified research expenses, the corporation still must file the schedule. 

After completing a mock S Corp return for MA, I was able to clear the errors by entering qualified wage expenses for my corporation on Line 1 of Schedule RC. The remaining lines should automatically populate based on your Form 355S. 

If this does not clear your error, I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number  (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

 @KARice 

[KARice]

LenaH,  

Thank you SO much for the response.  Since we don't have a current year MA R&D credit, we would not have any qualified wages though.  So wouldn't that number would be 0?  As I understand it, qualified wages would only include those wages paid for qualified services (ie R&D).  Really appreciate your response.  I have been trying to solve this for a few years. Thank you!

Karen

@LenaH 

[LenaH]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number  (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

@KARice 

[KARice]

LenaH,

Token is 152148143-39916536.

Thank you so much for your help!

Karen

@LenaH 

[LenaH]

Thank you for sending your token. After examining your return and escalating it to the team, it was determined that the return must be paper filed. Without the entries on Schedule RC, Schedule CMS will continue to populate an error that blocks e-filing. 

Thank you for your patience with this matter. 

@KARice 

[KARice]

Well the return is not allowed to be paper filed....I would have to file it online.  But doesn't this also mean that there is an error in the software for the MA return then?  And since this is true, shouldn't Turbotax be fixing this?  Thank you for your help with this!

@LenaH

[LenaH]

We are reaching out to the MA Department of Revenue to clarify whether a Schedule RC with zero current-year expenses can be included in an e-file when you have a carryover credit.

While we wait for their response, there's a workaround: enter $10 on Part 1, Line 1 and $20 on Part 3, Line 14 of Schedule RC. This should allow the form to be included in your e-file.

@KARice 

[KARice]

Hi Lena,

That seemed to work I guess...even though it seems weird to add amounts to the form that are not accurate.  I guess I will have to try it unless you hear back from the MA DOR.  

Thank you!

@LenaH 

[LenaH]

The update is tentatively scheduled for the end of the week. Please update your software next week and let me know if you encounter any further issues. 

Thank you for your patience.

@KARice 

[KARice]

Awesome!  Thank you so very much for all your help with this! Really appreciate it.  

@LenaH