Michael
Level 3

There seems to be a miscalculation in ProSeries when using Form 8839 and the Credit Limit Worksheet B for Schedule 8812, has anyone else encountered this?

IRS disallowed an amount for the refundable child tax credit that was claimed in conjunction with an adoption credit. These two credit calculations appear to be circular when looking at the forms and worksheets in ProSeries. After going to the IRS publications to manually work out the credits for both schedules/forms I find a discrepancy between what program computes and what I compute. The difference appears on line 15 of Form 8839. When filling out the credit limit worksheet for line 15, the program uses an amount that I think I know how it was arrived at but it is not what the IRS worksheet instructions require.

In the program Line 3 of the worksheet has an asterisk beside it with the explanation below "* If Applicable." The IRS worksheet is much more verbose, including exactly how to handle this line when filing Form 8839 and using the Credit Limit B Worksheet for Schedule 8812, something the program seems to have ignored. 

Be sure you verify all of the amounts on Schedule 8812 and Form 8839 if you use them both. Unless and until this problem is rectified I recommend getting the IRS instructions for Form 8839 and computing the Credit Limit Worksheet for line 15 manually. Currently this can be found at:  https://www.irs.gov/instructions/i8839#w2307703

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