Box 12 code on K1 showing as an error

[gbarber52]

The code G is correct and there was no problem with it last year.
When I go to forms in the desktop version of TT it is red and when I delete the G it is okay, but then it does not match what is on my K1.

[JulieS]

We'd love to help you complete your tax return, but need more information. Can you please clarify your question?

What type of K-1 do you have 1065, 1041, or 1120-S?

[gbarber52]

We have an 1120S K-1 and I see the error message when I go to forms and if I take the code G out when I run the Federal review I get the message that I need to enter a code. I looked back at the 2022 return and code G was used there with no issues.  Thanks for any help you can provide.

Grace

[gbarber52]

Sent a reply but not sure if it went directly to your message or a reply to my own original message.

[gbarber52]

K-1 1120S

[PatriciaV]

According to the Tax Help within TurboTax, Box 12 Code G is not supported for Qualified Conservation Contributions or any other 100% charitable deduction. The program allows for up to 60% of income for cash contributions or 50% for non-cash contributions.

Your options are to use Code A for 60% Cash Contributions or Code C for 50% Noncash Contributions. (Note that code C is not fully implemented in the current version but should be in a later update.)

The contributions amount you enter from Schedule K-1 flows to Schedule A on your personal tax return. If you don't have enough other deductions to be over the standard deduction, how you report charitable contributions would have no effect on your taxable income.

[gbarber52]

Thanks for the reply and if no longer supported I wonder why the code is still in use by those who prepare the K-1s - will check with the accountant who prepared this.

[PatriciaV]

The Code G limitation may be specific to TurboTax, since it is valid for Box 12 per the IRS Instructions for 1120S K-1.

[hjones022]

This is still showing as an error when I do a review of my federal taxes and says that K-1 S corp Box 12 code c is still under development and will be available by March 6th. I've called Turbox tax, removed and re-added the K-1 forms, updated my oeprating system and it's still showing an error. Any suggestions or is turbo tax working on this bug?

Thank you.

[PatriciaV]

The IRS made significant changes in Schedule K-1 for tax year 2023, adding dozens of new codes for several boxes, including new requirements for Form 8283, Noncash Charitable Contributions, which affect Schedule K- 1 Box 12 Code C.

Our programmers have been working to implement those changes for personal returns, connecting the new codes to appropriate Form 1040 lines and forms. Form 8283 is estimated to be ready by March 20, 2024. 

Because updates are released after business hours Pacific time, we recommend you wait to update your software the next day, run Review again.

@hjones022 

[hjones022]

Thanks for the update - I'll wait until March 21st to re-check. Really appreciate the reponse!

[BMT2]

I'm getting the same error when entering the information from my K1.  I created this K1 using Turbotax Business 2023 and it should represent the cash donations my business made during the year.  I didn't choose the code G for this item, it does it automatically.  Any suggestions on how to fix this from either side?  Is there a better code that represents cash contributions that are passed through via K1s?

[gbarber52]

I ended up using code A and it worked and carried over to my schedule A. The accountant that prepared our K-1 said this - I believe she could use the code for 60% and be just fine. Most charity is 60%, which means that your charitable deductions in total are limited to 60% of your adjust gross income. Hope this helps.  

[hjones022]

Thank you - that's super helpful! I may just wait until March 20th, but it there's still a problem - I'll go with your recommendation. Thanks again.

[shelenid]

Is there a new estimated date of availability for Schedule K-1 1120S Box 12 Code C?  I am still getting an error this morning.