I am getting an error message that I need to fill out the K1 partnership worksheet, but I don't have partners and I don't know what triggered this message. I'm unable to file my return without completing this form, but I am the sole owner/employee for my S-Corp.
Please clarify the exact error message you see. What version of TurboTax are you using?
K-1 Entry Wks- Partnerships (untitled) Partnership name has not been entered.
It does not give an error message. It is the generated K1 for my wife and I. My K1 is correct, My wife's K1 is missing information. The LLC is a pass through, taxed as a partnership. We are husband and wife. It is all listed as 50/50. All of the information is correct except for line 14 of my wifes K1. It should have listed the income as self-employment income. It did not. It split everything 50/50 as it should. I am in process of amending the LLC return and not happy about it. I am pretty sure it is a glitch in the program.
ALL of the information was entered. All of the information was correct. The generated K1 for my wife was missing line 14, self-employment earnings/loss. The program correctly divided all of the income correctly, as well as the capital accounts, depreciation figures for the 179 carry forward. The K1 is completely correct with the exception of also listing the information from Line 1 - ordinary business income/loss, also onto line 14, self employment income. Line 1 is exactly half of the total business income as it should be when Partner/members are 50/50.
To reiterate Sched K1, form 1065 part I is complete and correct, Part II is complete and correct, Part III is missing the information for line 14 which should have been there because Line 1 of part III has ordinary income. Both partners are materially involved with the LLC. ALL of the boxes were checked correctly. The K1's are Identical save for line 14.
Please clarify if you are preparing a business return for your S-Corp or your personal 1040 tax return.
I inadvertantly noted my K-1 as non passive activity and I should not have. how do I correct this?
Return to the K-1 you entered and review your answers to the interview questions.
In TurboTax Online, go to Tax Tools in the left column >> Tools >> Topic Search. Type in "k-1", then click the topic in the list and then GO to go directly to the start of that section.
In TurboTax for desktop, use the search box in the upper right corner.
Choose the type of K-1 you need to review, then click Edit/Update beside the company name.
Note the page "Did you participate?" that refers to material participation (not passive) and a later page "Describe the Partnership" where you check the box for both passive losses and investment at-risk.
Be sure to follow the prompts until you return to the K-1 summary page.