Page 123 - IRS Business Tax Credits Guide

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Fileid: … ns/i8936/202301/a/xml/cycle06/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Line 18 Modified Adjusted Gross Income (MAGI) 10:55 - 16-Feb-2023
Limitation Worksheet Keep for Your Records
1. Enter $150,000 ($300,000 if married filing jointly or a qualifying surviving spouse; $225,000 if head of
household) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2a. Enter the amount from line 11 of your 2022 Form 1040, 1040-SR, or 1040-NR . . . . . . . . . . . . . . 2a.
b. Enter any income from Puerto Rico you excluded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b.
c. Enter any amount from Form 2555, line 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c.
d. Enter any amount from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d.
e. Enter any amount from Form 4563, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e.
3. Add lines 2a through 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4a. Enter the amount from line 11 of your 2021 Form 1040, 1040-SR, or 1040-NR . . . . . . . . . . . . . . . 4a.
b. Enter any income from Puerto Rico you excluded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b.
c. Enter any amount from Form 2555, line 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4c.
d. Enter any amount from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4d.
e. Enter any amount from Form 4563, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4e.
5. Add lines 4a through 4e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter the smaller of line 3 or line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Subtract line 6 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
If line 7 is:
• Less than zero, enter -0- on line 18.
• Zero or more, enter the amount from line 15 on line 18.

Line 21 tax returns and return information are confidential, as
Enter the total, if any, credits from Schedule 3 (Form 1040), required by section 6103.
lines 1 through 4, 6d, 6e, and 6I; and Form 5695, line 30. The time needed to complete and file this form will vary
Line 23 depending on individual circumstances. The estimated
burden for individual and business taxpayers filing this form
If you cannot use part of the personal portion of the credit is approved under OMB control number 1545-0074 and
because of the tax liability limit, the unused credit is lost. The 1545-0123 and is included in the estimates shown in the
unused personal portion of the credit cannot be carried back instructions for their individual and business income tax
or forward to other tax years. return. The estimated burden for all other taxpayers who file
this form is shown below.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue Recordkeeping . . . . . . . . . . . . . . . . . . . 4 hr., 4 min.
laws of the United States. You are required to give us the 35 min.
information. We need it to ensure that you are complying with Learning about the law or the form. . . . . . . 41 min.
these laws and to allow us to figure and collect the right Preparing and sending the form to the IRS. .
amount of tax.
You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act If you have comments concerning the accuracy of these
unless the form displays a valid OMB control number. Books time estimates or suggestions for making this form simpler,
or records relating to a form or its instructions must be we would be happy to hear from you. See the instructions for
retained as long as their contents may become material in the tax return with which this form is filed.
the administration of any Internal Revenue law. Generally,

-4- Instructions for Form 8936 (Rev. 1-2023)