Entering partnership Schedule K-1, Line 20, "Other" in an individual return in ProConnect Tax

1. Under Input Return, select Miscellaneous Forms, then Tax Shelter Statement (8886) to expand the dropdown menu.
2. From the dropdown menu, select Tax Shelter Statement (8886).
3. Enter all applicable information as reported on the Schedule K-1 to complete Form 8886.  

For additional information on filling out the Form 8886 disclosure statement, see the here.

1. Under Input Return, select Taxes, then Other Taxes to expand the dropdown menu.
2. Select Schedule J, Recapture, Other Taxes from the dropdown menu.
3. Scroll to the section Other Taxes.
4. Select the input field for Other taxes (Click on button to expand).
5. In the Description field, enter Section 409A.
6. Enter the Amount.
7. Select OK.

For additional information entering interest and additional tax, see the here.

Starting in tax year 2023:

1. Go to Input Return ⮕ Credits ⮕ General Business and Vehicle Cr.
2. Select the Investment Credit (3468) section.
3. Select the Investment & Research tab.
4. Select the facility you need to generate the credit for.
   • Use the Add button to add as many Facilities or properties as needed.
5. Complete Part 1 for each Activity.
6. Scroll down to the Part II and enter the required information.
7. The credit flows from Form 3468 to Form 3800 to show on Form 1040.

You can input this information on Screen 34, General Business and Vehicle Credits of the Individual module of Lacerte. The credit flows from Form 3468 to Form 3800 to show on Form 1040.

For tax year 2022 and prior:

1. Under Input Return, go to Credits, General Business and Vehicle Cr.
2. Under the section General Business, Vehicle and Passive Activity Credits, enter the Name of activity (automatic if blank).
3. Under the section Credits in the field Form (Click on arrow to select from list), select 4 = Schedule E (partnership).
4. In Activity, select the applicable activity.
5. Select the Investment & Research tab.
6. Under the section Investment Credit (3468), scroll to the Coal Project Credit subsection.
7. Enter the applicable amounts from the K-1 for Form 3468, lines 5a–5c:
   • Basis in integrated gasification cycle property (20%)
   • Basis in investment in coal-based generating technology property (15%)
   • Basis on investment in coal-based generation technology property (30%)

For additional information on entering a qualifying advanced coal project, see the here.

Starting in tax year 2023:

1. Go to Input Return ⮕ Credits ⮕ General Business and Vehicle Cr.
2. Select the Investment Credit (3468) section.
3. Select the Investment & Research tab.
4. Select the facility you need to generate the credit for.
   • Use the Add button to add as many Facilities or properties as needed.
5. Complete Part 1 for each Activity.
6. Scroll down to the Part II and enter the required information.
7. The credit flows from Form 3468 to Form 3800 to show on Form 1040.

For tax year 2022 and prior:

1. Under Input Return, go to Credits, General Business and Vehicle Cr.
2. Under the section General Business, Vehicle and Passive Activity Credits, enter the Name of activity (automatic if blank).
3. Under the section Credits in the field Form (Click on arrow to select from list), select 4 = Schedule E (partnership).
4. In Activity, select the applicable activity.
5. Select the Investment & Research tab.
6. Under the section Investment Credit (3468), scroll to the Coal Project Credit subsection.
7. Enter the applicable amounts from the K-1 for Form 3468, lines 6a-6b:
   • Basis of property qualifying for gasification project credit, incl. CO2 sequestration (30%)
   • Basis of property qualifying for gasification project credit (20%)

For additional information on entering a qualifying gastrification project property, see the here.

What's new for Form 3468 for tax year 2024:

• For tax years beginning after January 1, 2024, eligible filers can claim the clean electricity investment credit under section 48e in Part V.
• If you are claiming a rehabilitation credit and you completed Part VII, lines 1i or 1j, you also need to complete lies 1k(i) and 1k(ii). Both lines are now required.
• The IRS established a pre-filing registration process that must be completed prior to electing payment or transfer of the investment credit. You can register here.

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Starting in tax year 2023:

1. Go to Input Return ⮕ Credits ⮕ General Business and Vehicle Cr.
2. Under the section General Business, Vehicle and Passive Activity Credits, enter the Name of activity (automatic if blank).
3. Under the section Credits in the field Form (Click on arrow to select from list), select 4 = Schedule E (partnership).
4. Select the Investment Credit (3468) section.
5. Select the Investment & Research tab.
6. Select the facility you need to generate the credit for.
   • Use the Add button to add as many Facilities or properties as needed.
7. Complete Part 1 for each Activity.
8. Scroll down to the part pertaining to this specific energy credit investment and enter the required information.
9. The credit flows from Form 3468 to Form 3800 to show on Form 1040.

For tax year 2022 and prior:

1. Under Input Return, go to Credits, General Business and Vehicle Cr.
2. Under the section General Business, Vehicle and Passive Activity Credits, enter the Name of activity (automatic if blank).
3. Under the section Credits in the field Form (Click on arrow to select from list), select 4 = Schedule E (partnership).
4. In Activity, select the applicable activity.
5. Select the Investment & Research tab.
6. Under the section Investment Credit (3468), scroll to the Coal Project Credit subsection.
7. Enter the applicable amounts from the K-1 for Form 3468, line 7:
   • Basis of investment in advanced energy project 

For additional information on entering a qualifying advanced energy project property, see the here.

1. Under Input Return, select Taxes, then Other Taxes to expand the dropdown menu.
2. Select Self-Employment Tax (Schedule SE).
3. Under the section Self-Employment Tax (Schedule SE), enter the Conservation reserve payments not subject to SE tax.

For additional information on entering conservation reserve program payments, see the here.