Box 12 code on K1 showing as an error

[PatriciaV]

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.

@shelenid 

[hjones022]

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. 

[PatriciaV]

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.

@hjones022 

[hjones022]

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:

Description of error:

There is a potential issue with the calculation regarding donations reflected on a K-1 (S Corporation of Partnership/LLC).

What needs to be done:

We've identified an issue in your federal tax return. This issue is being resolved in a product release scheduled for April 5th, 2024. On or after that date, you'll need to sign into TurboTax, complete a quick review (steps below), and resubmit your return. This is just for your federal 1040 tax return. To review and re-submit your return: 1) Sign in to your TurboTax account. 2) Review each K-1 under Income 3) Confirm the selections for Other Deductions (Box 12 for S S Corporations and Box 13 for Partnerships/LLCs) 4) E-file your return (you won't be charged any additional fees). Note: The calculation change may affect the taxpayer's refund or balance due.

I do not understand why this is still an issue - I've been waiting since February 15th to file my taxes. Is anyone else having this issue? 

[LB81]

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?

[yingx66]

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-c..., but unfortunately no response yet.

[hjones022]

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.

[yingx66]

I just open TurboTax and there is an update, after that update the issue is now fixed, code A is now handled correctly.

[LB81]

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.

[hjones022]

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.

[mchernick]

It's now April 8th and when I go into TurboTax it still says your bug can't be fixed and to come back after April 5th.  Is there at least a new estimate to when it will be fixed or is the bug fixed and for some reason I am still getting the error message.

[sallymillsward]

This seems to be an ongoing issue as I have spent 2hrs on the phone with TurboTax. They cannot resolve the G code issue in order to file taxes. When will this be resolved?

[PatriciaV]

Box 12 Code G is not supported in TurboTax for Qualified Conservation Contributions or any other 100% charitable deductions. TurboTax does allow for up to 60% of income for cash contributions or 50% for non-cash contributions. You have the option to use Code A for Box 12 to enter the Contributions from Schedule K-1.

This is a program limitation, not a programming issue. No change is planned for the 2023 tax year.

@mchernick 

@sallymillsward 

[mchernick]

FWIW the error message I had wasn't for a code G as I wasn't using it.

The error message I was getting said that it was a known bug in K-1 that would be fixed on a release coming April 5th or later.  If that is false information and the April 5th date definitely was then the error message you get after your K-1 is rejected should be changed.

Finally, after going through customer support chat they customer support people decided the best solution for my K-1 problem was to give me the desktop version of your software I was using the online version.

It cost me a couple about 2 hours of time to re input my data from the online version to the desktop version and $25 as they wouldn't give me the state electronic transfer for free even though I had already electronically transferred and rejected my state return once.  However, the bottom line was the desktop version didn't have the same bug that the online version had and my return was accepted.