Are you using the online version of TurboTax or the CD/Download version?
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.
Does it mean for Schedule K1 Partnership case I need to use the amount in Box 14 Code A only?
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.
Where do you see the amounts reported? What do you have on Schedule 1 of the 1040, line17?
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.
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.
I am still looking a concrete answer for this question. Please help.
@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.
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.
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.
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.
the only answer i have TT is software from hell. there is no way to enter required information from K-1 without getting double taxation. they must do it on purpose
You must be new to a partnership K-1 ... so LOOK at the actual form 1040 to see what is happening... you are NOT being double taxed ... when you entered the box 1 income the FEDERAL income tax was computed ... then when you entered 14a the SE taxes were computed. On 100K of income 38% would be about right if you add the fed & se taxes together.
You can peek at only the Federal form 1040 and the summary of the state info by going here:
1) lower- Left side of the screen...click to the left side of the "Tax Tools" text selection.
2) then select "Tools"
3) then select "View Tax Summary" from the pop-up
4) then back to the left-side and "Preview 1040"
Then hit the "Back" on the left side to get back to your tax entries.
To view your entire return using the online editions (including the state) before you file, you will need to pay for your online account.
To pay the TurboTax online account fees by credit card, without completing the 2019 return at this time, click on Tax Tools >>> Tools and then Print Center. Then click on Print, save or preview this year's return. On the next page, to pay by credit card, click Continue. On the next screen it will ask if you want Audit Defense, if you do not want this option just click on the Continue button. The next screen will ask for all your credit card information so you can pay for the account.
if you are so experienced in K-1 and TT. can you take us thru entire process of entering info. i imported all sales from my broker. got k-1 in a mail. what do i do with it? held partnership for entire 2019, did not hold it in 2018, sold 2019
Sales of a partnership is not an easy thing to "walk thru" on a public forum ... you need one on one guidance ... call TT support for directions or upgrade to the LIVE version or seek local professional assistance.
https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number
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