For K1 partnership box 1 and box 14 code A shows same amount and Deluxe is asking for both and resulting in double taxing for the same income. Why?

[IreneS]

Are you using the online version of TurboTax or the CD/Download version?

[mesh2112]

I am using Deluxe ... from CD, I purchased.

[IreneS]

You are not being doubly taxed on that income. It is correct to have the same amount in box 1 and box 14A.

Box 14A just identifies the income in Box 1 that is considered self-employment income.  You will see that the income from box 1 is only reported once on Schedule E, p. 2. line 28K.

[mesh2112]

Does it mean for Schedule K1 Partnership case I need to use the amount in Box 14 Code A only?

[IreneS]

No - Enter the amounts for BOTH box 1 and box 14.  

[mesh2112]

Still not convinced. The total income made for the partnership is $20k and box 1 is taking $4,500 and box 14A is taking $2,800 totaling it to $7,300. for $20K income resulting $7,300 tax? When I use other tool to verify - Liberty, it is not doing this (It asks for both information - box 1 and box 14A, but the tax calculation is about $2,800. My $20K should be reported as only self-employment or only income.

[IreneS]

Where do you see the amounts reported?  What do you have on Schedule 1 of the 1040, line17?

[IreneS]

Also, The $7,300 is NOT tax.  Box 1 says you received $4,500 of income.  OF that $4,500, $2,800 is from Self-Employment and subject to SE tax.

[mesh2112]

Sorry for the confusion: When I say box 1 is taking $4,500 ( I wanted to say, when I enter $20K in box 1 (income) from K1, it results in federal due of $4,500). The same amount $20K which is entered in 14 Code A (self-emplnt earned) again following my K1, this result a further due of $2,800. Because of these two entries I am getting a total due of $7,300. Note that the total income is only $20K, but it is indicated in box 1 and box 14A.

[mesh2112]

I am still looking a concrete answer for this question. Please help.

[mesh2112]

@TurboTaxIrene Form 1040 has no Schedule 1, line 17. On top of that, I am in the process of filing, I didn't reach the final to see 1040. The values I am mentioning above are the one I observed while I am in the process of filling the information. Good thing you talked about 1040 and upon checking there, I couldn't see any indication that schedule K1, box A. It has ONLY scheduled K1, box 14A*. I think this tells me that, for a general partnership,  I need to include only the Self-Employment earing (Line 14 A). Please clarify if that is not correct.

[IreneS]

Box 14 with Code A simply indicates how much of the amount in Box 1 is self-employment income.  You have to pay self-employment tax on the amount reported.  [That's why you might think you are being taxed double.]

Please fill out the K-1 entry as you see it -- with amounts in BOTH box 1 and Box 14 with Code A.  Either do it the correct way or deal with the IRS if they question it.

[mesh2112]

1) So you are saying I have to be taxed $4,500 on Box 1 as 'Ordinary business income (loss)' PLUS $2,800 on Box 14 Code A as 'self-employment tax' from $20,000 total income that I generated from the partnership.
2) Why doesn't 1040 indicate/show any info about Schedule K1 Box 1? It indicates ONLY Box 14 Code A.

[Fischmic1]

I am having the same issue. I think box 1 and 14a in TurboTax are not working correctly. Entirely way too much coming out . 14a should be informational only, should only see the refund amount lessen with entry into 1 or the other. After entering ordinary income of 100k in box , I lose over 20-23kin refund from line 1. That is correct, however this should not happen a second time with box 14 a. If I enter the 100k again in box 14a (same amount that is already in box 1) it takes another 15k. So in total would be losing 23k from box1 and15k from box 14a, which is 38k on 100k ordinary. That is a tax rate of 38% this can not be correct. I would love to have this resolved for sure as this is very confusing.

what tax would you safely expect on 100k ordinary business income line 1 of a K1. I am def not in a 38% tax bracket.