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PatriciaV
Expert Alumni

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

@bgclonts

Please clarify what you have done several times. Have you tried the work-around given above by Peppelarson?

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braynex
New Member

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

I also experienced this error in my 1120-S return and followed the recommendation from TurboTax  - it did not work.  I then followed Peppelarson's solution which worked perfectly.

 

Hopefully TurboTax will implement a correction for this error soon.

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

Had to comb through this / redo the PPP form SIX OR SEVEN TIMES before I finally got this error to disappear.  For a big company that takes > $120 for this software every year, that's POOR development, error fixing, testing.  Fix your issues, Intuit.   Wear your big-company pants.

ADSMiguel
New Member

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

Hello! I tried the suggested path by @Peppelarson  switching between steps 2 and 3 and both times work with no error. However the forgiveness amount does not show up on schedule k-1 under line 16b. It doesn't show up at all not sure how to fix this? 

PatriciaV
Expert Alumni

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

@ADSMiguel

Please clarify what entries you made on Schedule M-1 Items Worksheet (Sch M-1 Wks) and if the PPP Loan Statement was generated.

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Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

Finally was able to submit it. 

Had to create a new file: 

1. PPP Section say No 

2. Go to Forms 1120 pg3-5, M-1 Enter PPP Forgiven $Amount

3. Finish the Income & deduction sections. Do not enter anything for the Interest Income in my case. 

4. Go back to PPP Section say Yes and enter the PPP Forgiven $Amount

5. Check for Errors, Save and submit

 

I didn't wanted to take any chance, and so I bought $60 Audit Defense. 

 

bobjagcam
New Member

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

I will try the suggestions to fix M1 problem

Scorp revenues are less than $250000 but TurboTax will not allow the schedule M1 to be deleted   I do not want to file the M1. Help. 

AliciaP1
Expert Alumni

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

If your revenues AND assets are less than $250,000 you do not have to report your M-1 unless you received notice of a forgiven PPP loan in 2021.

 

@bobjagcam

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Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

Hi @Peppelarson 

Thank you for the guide. I saw in another post saying we need to add the PPP forgiveness amount in both "Other permanent income items", and  "Other permanent expense items" of the Schedule M-1 WKS.  I'm wondering if we need to write the values in the expense items?  

I also found there's a 16C item comes with adding the PPP forgiveness in the  expense items. Which is a duplicate of 16B.  

 

BHarvath
New Member

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

Peppelarson's workaround worked for me. It worked in the order they presented, and we were able to clear the error and get our Fed. 1120S filed electronically. Thanks P.L.! 
TT, please patch this glitch. 😉

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

This worked. Thank you

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

Based the suggested steps, it worked well.

JeffTxVet
Returning Member

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

THANK YOU! I also have an S-Corp and had the same issue, it was driving me crazy.  Your solution worked.

 

Many thanks!

Jeff

PerryW
New Member

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

This action to place zero into the in state interest on M-1 didn't work.  Will try the other work around.

PerryW
New Member

Error: Schedule M-1 Items Worksheet: Book-TxExmpt In-OutState

Peppelarson is brilliant!  Worked in the steps listed and I was cleared to efile, no errors and no alteration of my expected taxable income figure!  Thanks a ton!!

TurboTax - you need to fix this problem - it's been since February that you knew of the error.

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