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How to generate Form 6765 partnership Increasing Research Credit in ProConnect Tax

SOLVEDby IntuitUpdated January 19, 2024

This article will assist you with generating Form 6765, Credit for Increasing Research Activities, in the Partnership and Individual return. Use the applicable instructions below for your module.

For tax year 2023, Form 3800 is undergoing a major IRS rewrite that expands the form to 8 pages. This form is still in development, pending a future release. Form 1120S and 1065 filers that require Form 3800 may want to consider filing extensions.

New for tax year 2023:

  • Pre-filing registration requirement. If you intend to make an elective payment election and/or a transfer election on Form 3800, you must complete a pre-filing registration before you file your tax return.
  • Elective payment election. Beginning with tax year 2023, certain applicable entities and electing taxpayers can elect to treat certain IRA 2022 business credits as elective payments. Certain eligible taxpayers can elect to treat CHIPS 2022 credits as elective payments. Any overpayments may result in refunds.
  • Transferring credits. Taxpayers may make an election to transfer all or a portion of certain IRA 2022 credits.
  • See IRS instructions for 3800 for more information.

To enter amounts for the Form 6765 in the Partnership or S Corporate module:

  1. Go to Input Return Schedule K Credits  Other Credits
  2. Select the Investment & Research tab.
  3. Scroll down to the Increasing Research Credit (6765) section.
  4. Check the box labeled Electing alternative simplified credit, if applicable.
  5. Check the box labeled Elect reduced credit (Section 280C), if applicable.
    • This will mark the boxes on lines 17 and 34 "Yes"
    • The amount on line 16 will be multiplied by 15.8% and the amount on line 33 will be multiplied by 79%
  6. Enter the applicable expenses in the remaining fields to flow to Form 6765

If entering this information from a passthrough K-1 into a 1120S or 1065 return:

  1. Go to Input Return Schedule K  Passthrough K-1's
  2. Select the Lines 12-19 tab.
  3. Scroll down to the Credits (15) section.
  4. Under the Other Credits (15) subsection, enter the amount in Credit for increasing research (M)

To enter Form 6765 in a Corporate return: #

  1. Go to Input Return  Credits  General Business Credits.
  2. Select the Investment & Research tab.
  3. Scroll down to the Increasing Research Credit (6765) section
  4. Check the box labeled Electing alternative simplified credit, if applicable
  5. Check the box labeled Electing reduced credit (Section 280C), if applicable
    • This will mark the boxes on lines 17 and 34 "Yes"
    • The amount on line 16 will be multiplied by 15.8% and the amount on line 33 will be multiplied by 79%
  6. Make any other applicable entries in this section for expenses that should flow to the 6765

The amount of credit will be calculated on the 6765 and flow from there to the 3800 and then to the 1120, page 3, Schedule J, part I, line 5c.

To enter Form 6765 in the Individual module:

  1. Go to Input Return  Credits  General Business and Vehicle Cr.
  2. Under the Credits section, use the Form (Click on arrow to select from list) drop down input to choose the form this credit is applicable to
  3. In the Activity drop down input, choose the applicable business activity for this credit.
  4. Select the Investment & Research tab.
  5. Scroll down to the Increasing Research Activities Credit (6765)
  6. Check the box labeled Electing alternative simplified credit, if applicable
  7. Check the box labeled Elect reduced credit (Section 280C)
    • Checking this box will mark the boxes on lines 17 and 34 as "Yes"
    • The amount on line 16 will be multiplied by 15.8% and the amount on line 33 will be multiplied by 79%{}
  8. Check the box labeled Eligible small business for Form 6765 ONLY, if applicable
  9. Make any other applicable entries for expenses in this section to flow to the 6765

If entering this information from a partnership K-1:

  1. Go to Input Return  Income Passthrough K-1's  Partnership Info (1065 K-1)
  2. Select the Lines 11-20 tab.
  3. Scroll down to the Line 15 - Credits and Withholding section
  4. Find the (15M) Increasing Research Credit subsection
  5. Enter the Amount of credit

If entering this information from an S corporation K-1:

  1. Go to Input Return Income Passthrough K-1's  S-Corp Info (1120S K-1)
  2. Select the Lines 11-17 tab.
  3. Scroll down to the Line 13 - Credits and Withholding section
  4. Find the (13M) Increasing Research Credit subsection
  5. Enter the Amount of credit

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