amending state tax with a k-1, 1065
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
lisab5
Level 2

amending state tax with a k-1, 1065

I received a K-1 after filing both federal and state.  I am amending them with Turbo Tax, and added in my K-1 1065 form.  There is income loss on the form.  When the program directs to my State taxes, I don't see any place to update the information/add a K-1.  I see no changes, but do not want to miss anything.  Am I incorrect to think that Turbo Tax covered everything?  Additionally, if nothing changed that I can tell, I still send in the State tax forms?  Thank you in advance for your help.  

7 Replies
JamesG1
Expert Alumni

amending state tax with a k-1, 1065

The K-1 reported a loss and the loss should flow to the state tax return.  Do you mean that you see no change at all in the numbers?

 

Did the K-1 report a passive loss that you are must carryforward?  Did the Federal amended tax return generate a refund or reduction of balance due?

 

Did you prepare an amended tax return for your state?  Did the amended state tax return generate a refund or reduction of balance due?

 

If you did not prepare an amended state tax return, did your state tax return reflect a refund increase or reduce your balance due?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
lisab5
Level 2

amending state tax with a k-1, 1065

@JamesG1 

When I started the amend process, Turbo Tax put the returns back to 0 as a starting point.  I entered the K-1 info for federal, and nothing changed.  

This K-1 is from an investment account, one of the funds is somehow a "partnership"... it was never from being in a business.  It is something i need to sell off through an investment account.

I started the amended state (turbo tax guided me into that) however no questions came up for me to enter the K-1, so i wasn't sure if it "autopopulated" somewhere for state?  No numbers ever changed.  They stayed 0.

I have not completed either of the amended taxes because I am scared that it isn't correct.  I just want to ensure K-1 is accounted for... since I didn't have the form when I first filed/submitted taxes for 2019.  In entering it for 2020, I also noted no changes for the amounts.  

 

Thank you for your help!

JamesG1
Expert Alumni

amending state tax with a k-1, 1065

Sounds like a publicly traded partnership?  See K-1 Part 1 Box D.  Is it checked?

 

What entries are you seeing on the K-1 in boxes 1, 2 and 3?

 

This Intuit Help states:

 

How are passive losses treated on a Publicly Traded Partnership (PTP?

 

Solution:

 

Passive losses for Publicly Traded Partnerships are:

  • limited to income from the same PTP,
  • excluded from being taken against other types of passive losses,
  • suspended and will carry forward until the PTP has income to offset the loss.

If the partner's entire interest in the PTP is completely disposed of in a fully taxable disposition, any unused losses are allowed in full in the year of disposition.

 

In addition, I suspect that you have not opened an amended tax return for your state(s).  Please see this TurboTax Help.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
lisab5
Level 2

amending state tax with a k-1, 1065

Yes, box D is checked for PTP.

Entries for box 1 is -443 , boxes 2 and 3 are 0.   This is similar to this year, with a larger negative number in box 1.  

I received a State Schedule attached to the K-1, but my state isn't listed .

 

When I completed the amended Federal, it asked about amending State, and I engaged in that continuation.   There were no prompts for anything to modify/add the K-1, so I wasn't sure if that was right.

JamesG1
Expert Alumni

amending state tax with a k-1, 1065

The loss is related to a publically traded partnership (PTP) and, I suspect that the loss is not realized on the 2020 Federal 1040 tax return nor the state tax return.

 

In the TurboTax Print Center, you should be able to view a statement Passive Activity Adjustment to Income or Loss showing the loss limited and suspended for the current year.  The loss will be a carryforward to 2021 unless you have recorded income earned in a previous year against that same investment.

 

This is what is meant by the statement:

 

Passive losses for Publicly Traded Partnerships are:

  • limited to income from the same PTP,
  • excluded from being taken against other types of passive losses,
  • suspended and will carry forward until the PTP has income to offset the loss.

If the partner's entire interest in the PTP is completely disposed of in a fully taxable disposition, any unused losses are allowed in full in the year of disposition.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
lisab5
Level 2

amending state tax with a k-1, 1065

I will try to look at the Print Center. My number one priority is making sure I provide all the information to the IRS.  I don't care about whether I get money or not.  I want my taxes to be finished.  I've never had a K-1 until the 2019 and 2020 tax years.  I have not yet filed 2020 taxes because I wanted to ensure this k-1 fiasco was correct.  Nothing happened in my 2020 state taxes to indicate anything about the k-1, but I just trusted that the TT program flowed the information that way.   I'm working on the amendments to 2019 prior to actually filing 2020.  Every other time, my taxes have been simple.  K-1 is a wrench.    Do i need to pay for the fanciest TT plan to get their help?   I just want to ensure I'm providing all the information the IRS would ever want.  This PTP stuff is completely Greek to me, no disrespect.   It just has me confused. 

lisab5
Level 2

amending state tax with a k-1, 1065

I do not see a Print Center, to find the Passive Activity Adjustment.  

Do you have suggestions to know if my K-1 data was channeled from the Federal to State tax Turbo Tax program?

 

Dynamic AdsDynamic Ads
v
Privacy Settings