cpr1955 Posted September 12, 2016 Report Share Posted September 12, 2016 I have a client who owns some restaurants and has general business credits from SS and Medicare taxes paid on tips. If I am understanding IRS regs correctly, the credit must be carried back one year. When I imported my K-1 data, the credit was automatically entered on Form 3800 and applied to the current tax year. I want to carry the credit back to 2014, but cannot figure out how to prevent the credit being applied to 2015 without doing overrides. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted September 12, 2016 Report Share Posted September 12, 2016 I have not actually had anyone able to take the credit because of the minimum wage portion of the provision, BUT it is my understanding that the carry-back/carry-forward rules only come into play if there is no income tax in the current year. In other words, the credit applies first to 2015 and is not refundable; so if it is not used up you would carry any remaining credit back one year and any left after that may be carried forward for twenty years. IRS has informational sheet at IRS page. You might find that helpful. 3 Quote Link to comment Share on other sites More sharing options...
cpr1955 Posted September 12, 2016 Author Report Share Posted September 12, 2016 Great - thank you! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.