Kac1214 Posted April 7, 2021 Posted April 7, 2021 Has anyone looked at the Form 8881 to use for the Start Up Credit? What would you enter into line 6? Line 8 adds 5 and 6 and would seem to double the credit or what am I missing? Thanks 1 Qualified startup costs incurred during the tax year 4,500.00 2 1/2 of the startup costs 2,250.00 3 Enter the number of employees eligible to participate in the pension plan 15 $ 250.00 3,750.00 4 Enter greater of $500 or the amount from line 3 (not to exceed $5,000) 3,750.00 5 Enter the smaller of line 2 or line 4 2,250.00 6 Credit for small employer pension plan startup costs from partnerships and S corporations ??? 7 Reserved for future use 8 Add lines 5 and 6, Partnerships and S corporations, report this amount on Schedule K. All other, $ 2,250.00 report this amount on Form 3800, Part III, line 1j PART II 9 Enter $500 if an auto-enrollment option is provided for retirement savings 10 Small employer auto-enrollment credit from partnerships and S corporations 11 Add lines 9 and 10. Partnerships and S corporations, report this amount on Schedule K. All others, report this amount on Form 3800, Part III, line 1j Form 8881 PDF
401k Kraken Posted July 1, 2022 Posted July 1, 2022 @Kac1214 Did you ever find an answer for this? I have just spent an hour researching the same thing. My best guess, as of 7/1/2022, is that this line is leftover from the old Form 8881. The form's instructions states "Taxpayers, other than partnerships and S corporations, whose only source of these credits is from a partnership or S corporation, are not required to complete or file this form." Sole and C-corps are to claim it directly on Form 3800. So why are Line 6 and Line 10 singling out partnerships and S-corps if they are the only ones filing this form? I am hoping the IRS comes out with some better guidance. Following the thread!
Kac1214 Posted July 6, 2022 Author Posted July 6, 2022 No, I have not. It seems like the Form is wrong to me but it has not been updated since 12-2020.
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