Unable to enter Part III of form 8801 worksheet (2022)

[tenyearuser]

I have an AMT tax credit on line 26 on 2021 Form 8801 due to ISO exercise and hold. I also reported capital gain and qualified dividends on  the 2021 Qualified Dividends and Capital Gain Tax Worksheet. However, when I tried to work on the 2022 form 8801 which at line 11 tells me to complete Part III of Form 8801, there is no option for me to manually enter anything in the 2022 form 8801 (there is no yellow box) in form mode. If I go back to the tutorial mode using "Credit for AMT Paid in Prior Year" it simply tells me "it turns out you don't qualify for this credit" which is plainly incorrect. Any suggestions? Thanks. 

Software is TT Premier desktop.

[tagteam]

There is a worksheet in Part III but it may not be applicable to your scenario.

Unfortunately, TurboTax does not do a great job with many AMT issues so you might want to contact Support for the correct entry procedure.

How do I contact TurboTax? (intuit.com)

[tenyearuser]

Part III worksheet is not only applicable, but actually required for my scenario (Form 8801 line 11, second bullet point). I will need to follow part III until the end (line 55) so I can populate line 11 with the line 55 result. Here, there is no option for me to do Part III. Without it, Turbotax is using a wrong number for line 11 (based on the third bullet point in line 11) that causes an incorrect AMT credit I can claim for 2022. 

I called support and it's useless. First the computerized agent gave me a link to a useless community webpage. Second they asked for my phone number and decided I am not eligible for speaking to a human for product support. 

[notaxes2023]

I am in the exact same situation.   I had to change from the online version of TT to the desktop version and complete the entire form 8801 manually by overriding the values.   TT didn't add much value here.   After doing it manually, I'm able to get the AMT credit I deserve.    I wish TT would fix this but like you, they won't speak to me unless I upgrade.

[tenyearuser]

Glad to hear I'm not alone and that this is likely a TurboTax product defect yet unresolved. I'm curious how did you manually edit form 8801? In my case I need to complete part III of this form per the instructions printed in line 11, yet all the boxes in part III are white and not clickable. 

[notaxes2023]

you have to use the downloaded version of Turbotax (not online version).   Click on the entry you want to change and go to the Menu->Edit->Override.   This will allow you to type a value on the line selected.

[tenyearuser]

That does the trick! Thank you so much. It is the desktop TT premier. I also found that I can right click on a gray box in Part III and select "override" to be able to enter it. I had to do the worksheet line by line the old way (there is no automatic math) but it works. 

[submast3r]

I see you!

I’m in same position and have been working with support for weeks trying to find someone that even understands form 8801.

Did you end up filing by mail? I’m unable to efile with an override which is lame because it’s the softwares fault!

[submast3r · Accepted solution]

I found a fix!

Enter zero on foreign earned income tax smart worksheet line 2a in form 8801. That will make part III come alive and properly calculate based on qdcg tax smart worksheet inputs.

[notaxes2023]

Wow!   You're a genius!    I just tried your fix and it works!    I don't know how you figured that out but its not very intuitive so great job and Thank you!!

[ajayka]

You truly are a genius - thank you so much! I have struggled with this issue for the last couple of months and while I was aware of the manual override option I  did not want to use it as it didn't seem right (not to mention cumbersome).

The customer support (had 3 different live sessions) was completely useless and not trained. My issue did get escalated to someone who claimed to have 22 years of tax experience but she too did not understand the issue and gave a rather useless response and closed the case: "Your part III is not prepopulated because you did not have a schedule d tax worksheet present in your return. Instead, you had a schedule d amt worksheet (check your forms in return for 2021). Per Turbotax on demand tax guidance, Part III is calculated from the schedule d tax smart worksheet. Since your return did not have a schedule d smart tax worksheet, the information did not prepopulate"

And this made no sense as 2021 TurboTax (desktop) correctly used the qualified dividends and capital gain tax worksheet to calculate my tax and not the schedule d smart tax worksheet (which by the way was also created).

I believe this  is a serious issue and I wonder how many people have lost money (and will continue to lose money) because of TurboTax calculating the wrong 8801 credit even though it has all the information from last year tax return. And for online version there appears to be no workarounds....

[tenyearuser]

This is the best answer! I canceled the override and used your method and the correct 8801 Part III is automatically populated. Thank you.

TurboTax dropped the ball here: the information ('0' in 2a of Foreign Earned Income Tax Smart Worksheet) is already in my 2021 TurboTax file and I should not have to do it manually.