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?
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
Sent a reply but not sure if it went directly to your message or a reply to my own original message.
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.
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.
The Code G limitation may be specific to TurboTax, since it is valid for Box 12 per the IRS Instructions for 1120S K-1.
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.
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.
Thanks for the update - I'll wait until March 21st to re-check. Really appreciate the reponse!
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?
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.
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.
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.
No, we don't have an update for the estimated release date. However, the work-around for this issue is to omit your K-1 entry for Box 13 Code C. Instead, enter it directly into the charitable contributions section under Deductions and Credits on your federal return. This is where the entry from Schedule K-1 would ultimately be reported.
I understand that is a workaround, but won't this be flagged by the IRS because you are not reporting a box checked on your K-1 on your tax returns? That seems like an unecessary risk. Is there an update on when this will be ready? 7 days until the "end of March". I've been waiting to file my taxes since February 15th because of this one item.
The IRS doesn't see the entries labelled as coming from Schedule K-1. Instead, the numbers entered from a K-1 flow to other appropriate forms in your return. In the case of Box 12/13 Code C, the contributions are reported on Schedule A. So, omitting the K-1 entry and making a directly entry under the Contributions topic is an acceptable short-cut.
We do not have an updated estimate for the release of this fix. The date quoted in your return is the official estimate.
It looks like Box 12 code C is now working and I was able to try to e-file my taxes. However, the IRS rejected my taxes because it says I need a form 8283 - I entered all of the information for this in the K-1 section of TT. When I go to fix my return, TT says:
Schedule K1 Box 12 - Code A - charitable contributions are not flowing through to Form A - Itemized Deductions. The amount was properly flowing through last week until I updated Turbo Tax and now the only way to get the amount to flow through is to use the drop down box to select Code B which is actually a lower threshold. Had I not caught what appears to be a program error, this would have cost me over $2,000 in additional, incorrect taxes. I thought Turbo Tax had a 100% calculation guarantee?
I have exactly the same issue and asked Turbotax here https://ttlc.intuit.com/community/business-taxes/discussion/in-the-schdule-k-1-s-corp-item-12-if-i-chose-code-a-for-the-donation-the-amount-won-t-be-added-to/01/3292266#M109899, but unfortunately no response yet.
Thank you for communicating that you're having the same issue. Supposedly, TT is fixing the issue today with a software release, but I checked a few minutes ago and I'm still not able to file. Hoping they get it fixed by tomorrow, but they've continued to move back the date repeatedly over the past two months. It's crazy.
I just open TurboTax and there is an update, after that update the issue is now fixed, code A is now handled correctly.
Thank you for letting us know. That error was created during another update because it worked properly in February. Luckily noticed my tax liability went up after I did an update last week. Glad it has been fixed but I already filed my taxes using the work-around of selecting Code B on the K1 - Line 12.
TT says that I've "fixed" my return and should be able to file after it was rejected by the IRS and the charitable contribution from my K-1 is flowing through to my 1040, but it is still not generating form 8823 when I check my tax forms , which is what caused the IRS to reject my filing. Has anyone been able to generate form 8823 through a charitable contribution from a K-1 (S corp) or file with the IRS without it (charitable contribution over $500)?
Thanks for your help - so frustrated at this point. I've been waiting since 2/15 to file because of this one issue that was supposed to be fixed at the end of February, then March 20th, and now today, April 5th.