Do I also list the CARES ACT employee retention credit amount under "other deductions" on statement A for QBI from Schedule K-1?

[kaylaedgett]

Or should it ONLY be listed on Schedule K-1 Line 13 "p" (credits)?

[JeffreyR77]

No, you do not need to list it under "other deduction' on statement A for QBI for Schedule K1.

[anon321]

You advised that employee retention credit amount should only be shown on the 1120S Form K-1 Line 13

Code P, which I agree with BUT on the individual Form 1040, Turbotax Home & Business takes that amount and moves it to Form 3800, Part III, Line 1aa, which, according to Turbotax, is for "Credit for Affected Disaster Area Employees" and refers you to form 5884-A. In addition, you get a message from Turbotax that says, "We won't be able to E-file your return". They say to print out the return and mail it.

QUESTIONS:

1- Does the ERC credit still go on the 1120S Form K-1 on Line 13 with Code P?

2- Must we still print out the return or is Turbotax going to change the message and let you E-File the darn return?

Need reply quickly so I can file the return.

Thank you for your anticipated response.

[DaveF1006]

Yes, in answer to all of your questions.

1. You do need to report the ERC credit in Box 13 of your K1.
2. Once this is done, it generates form 3800 in Part 111, Box 1AA per IRS regulations.
3. If Turbo Tax does not permit efiling, you will need to send all this in by mail.