Turbo Tax Balance sheet is out of balance sheet is out of balance by the 50% unallowable meals deduction. QuickBooks is in balance. How do I correct TurboTax?

Forum|Forum|7 years ago
June 6, 2019
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TurboTax Free Edition Online

Best answer by MinhT1

You should reduce Retained earnings by the amount of the 50% unallowable meals expense. That unallowable amount is reported on line 3b of Schedule M-1.

MinhT1Answer

Level 15

You should reduce Retained earnings by the amount of the 50% unallowable meals expense. That unallowable amount is reported on line 3b of Schedule M-1.

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ksc999000

Level 2

I ran into this same issue. The answer above wasn't clear to me; nor was it correct in my case. Before presenting the calculated (by TT) Retained Earnings amount that disagrees with QB, TT ask if the Booked Income matches the Taxible Income. I mistook this to be the Taxible income calculated by QB and said yes because both Taxable incomes agreed. However, I should have said no, the booked income does not match the taxable income. They were off by the amount of the 50% meals deduction limit. Once I answered that question correctly by saying NO, the next screen allowed me to make the adjustment to Retained Earnings in TT. At that point, the TT calculated RE matched the QB calculated RE.