2024 K-1

[Galato]

I am receiving once again a K-1 form for a few crypto coins valued at $206 at the start of 2024, and valued at $202 at the end of the year. So for a current year there was a net income (loss) of -$4. This has been the trend for this asset for the past 2-3 years and I have been filing around the same loss of $2 - $6 each year. I am wondering, is it a requirement to keep reporting such a small amount? I don't like to skip anything in my returns even if it is a penny, but what is this altering in my return other than reporting what the IRS will probably get from the Partnership's reporting? And why is TurboTax requiring an additional $80 to upgrade to Premium just to enter this form? Why not offer this form for a few dollars to the Deluxe version if that is all is needed beyond that version? We have been loyal users of this platform for years but pricing seems to be a bit steep at times.

[ThomasM125]

You are technically required to report the income. However, since it's affect on your tax return may be minimal the consequence of not reporting it may be equally minimal. The only way to be sure though would be to make the entry.

 K-1 forms can be very complex both in term of the number of possible entries on them and also processing those entries so they are accurately reflected on your tax return. They are likely the most complex aspect from a programming standpoint of the design of the program. I suspect that is why you have to upgrade to enter one, to cover the overhead cost of providing it to you. 

[Galato]

Thanks for the reply Thomas. I won't be skipping anything that needs to be reported even if it is a single penny. 

It is a bit disappointing though that to report this will require such a large increase on price. I work for a software company and I am a software engineer, I understand tier pricing but I wish TurboTax can be smarter on certain returns that only require only one additional form - I don't think the complexity of the K-1 form is that high that will require so much software engineering effort and cost that will need to be imposed on the customer.

In any case, it is what it is I will pay for it. One additional question, I started my return through Fidelity that offers a 20% or 30% discount. How is that honored with Turbotax? If for some ridiculous reason it does not get applied, how do I make a case of it? 

Regards

[SusanY1]

As long as you access TurboTax through the Fidelity affiliate discount link, the discount will apply when you check out.  If for any reason you don't see it, you can reach out to our customer service team by following the directions found here: How do I contact TurboTax?