My wife received a schedule k-1 Form 1065 from her employer. How do we enter that information for our joint taxes? We did an extension because we were waiting for it.

[VolvoGirl]

You need to use Online Premier (or higher) or any of the Desktop programs to enter a K-1.

To enter a K-1 go to

Federal Taxes Tab or Personal (Home & Business version)

Wages and Income

Then scroll way down to S-Corp, Partnerships and Trusts

Schedules K-1 - Click the Start or Update button

Be sure to pick the right kind of K-1. There are 3 kinds, 1041, 1065 & 1120S

[DoninGA]

To enter a Schedule K-1

Click on Federal
Click on Wages & Income
Scroll down to S-corps, Partnerships, and Trusts
On Schedule K-1, Q, click on the start or revisit button

Or enter k-1 in the Search box located in the upper right of the program screen. Click on Jump to k-1

Note - You have to use the TurboTax online edition of Premier or higher to enter the Schedule K-1.  Upgrade if necessary.

[Opus 17]

"Employer"?

Form 1065 is a partnership tax return.  Form K-1 is used to indicate each partner's share of income and expenses.  Is your wife a partner in a small business, and not an employee?  They are very different things. 

[lukester517]

She gets a form of profit sharing and this is the form they gave her.   They build big industrial warehouses that are rented.     The form is very confusing because so much of it is empty or has zeros.

[Opus 17]

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@lukester517 wrote:

She gets a form of profit sharing and this is the form they gave her.   They build big industrial warehouses that are rented.     The form is very confusing because so much of it is empty or has zeros.

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If she is a partner in the business, a K-1 is appropriate.  

https://www.irs.gov/businesses/partnerships

However, if she is a w-2 employee with no "interest" in the business other than providing labor for a salary, then any profit sharing should probably be reported as wages on her W-2 (like an annual bonus) and be subject to employment taxes and regular withholding.

You haven't shared enough facts to really know, and it would probably take an employment lawyer to look at her employment contract and the organization papers of the business to know for sure.  If she is not really a partner, then by reporting the profit sharing on a K-1 instead of the W-2, the business is putting the entire burden of social security and Medicare tax (15.9%) on her, instead of paying half as they are required to do for employees.

I can only suggest that if you want to include the K-1, there is a section specifically for K-1 statements, you may need to upgrade to Turbotax Premier if you are in Basic or Deluxe.  Enter what you can and leave blank what is blank.  Not every box will be filled in for every business.  Your K-1 might be perfectly acceptable.   If Turbotax won't file a return because of missing information, you could try calling customer support for help with entering the K-1.  You might be required to file by mail if the K-1 is missing information that the IRS requires for e-filing. 

Otherwise, you might want to talk to an accountant or an employment lawyer to make sure this situation is legitimate.