I have a new open equity balance in my balance sheet that was not there last year. This is modifying my retained earnings calculation in my QBO vs the RE calculation that is being done by turbo tax by 133. I tried manually entering the RE and Turbo tax is not accepting my manual entry for the balance sheet calculation. I have tried several times and even made sure i had current turbotax updates. Besides printing off the forms and whiting out the numbers to correct my balance sheet I am not sure how to handle this issue.
The asset side of my balance sheet is correct as are the liabilities.
Unfortunately, you cannot change the Opening Balance of Equity on a business return. This number is automatically transferred from the prior year. Retained Earnings are based on last year plus this year's income or loss, and cannot be over-ridden either.
If you need to adjust the ending balance of equity, you can either adjust each member/partner's ending capital balance using the "other adjustments" line. Or you can report a "prior period adjustment" as miscellaneous business income or expense.
Adjust member capital under Business Info >> Member/Partner Information. Just be sure you adjust all members according to their ownership interest in the company.
Note that you may not need to include a Balance Sheet with your return. Read more here:
What do you do if the BEGINNING BALANCE of the retained earnings for this year does not match the value showing for END OF YEAR in last year's version of Turbo Tax. for some reason it did not carry over accurately. I can correct it on the M-2 but that does not transfer to the Balance Sheet.
When I go through the editing portion it does tell me that I can adjust the Retained Earnings by using the Retained Earnings Reconciler but I cannot find that anywhere.
I have a similar problem - prior year's capital ending partner capital balance did not transfer as the current year beginning partner capital balance. All that was included was last year's earnings as the beginning balance for 2019. The prior year (2018) beginning partner capital balance somehow became 0. Is there a way to fix this?