LLC K1 line 14

[OldCarGuy]

Marilyn, I have traced the problem back to a point I may need the "live help" you suggested

The problem is the forms SE T and SE S

On both, Line 2 shows NO K1 income although K1 income from box 14 is entered correctly and shown in the 1040 as income -- I was able to match the steps in the 2020 return to the 2021 return to find the discrepancy.

I sent in numerous messages and received good responses, but none have solved the SE tax problem

Now that I have gotten to the root of the problem, I'm hoping the TT experts can figure out what happened

If I file the 1040 as it stands, I will be audited for sure

Jim

[OldCarGuy]

Over the last 2 weeks, with the help of TT experts, I have finally found the source of this problem

-- the K1 income from line 14 flows through to 1040 income

BUT does not show up as SE T or S income -- it's a material sum missing

I know I've been a pest about this, but I need a TT solution - pls help

Jim

[PatriciaV]

On the diagnostic copy you provided mid-February 2022, from a TurboTax 1040 Individual return, none of the Schedule K-1s have entries for Box 14 Self-Employment earnings (loss). There are three K-1s in your return, two for Taxpayer (one GP, one LP)  and one for Spouse (GP).  Expert AliciaP1 replied in the thread that the K-1s had nothing on Line 14. Have you updated those entries since then?

I tested the program flow by entering Code A (Net Earnings (Loss) from Self Employment) and an amount on Line 14 for both K-1s that were checked GP (Taxpayer and Spouse). Both Sch SE-T and Sch SE-S now have income reported on Line 2 (Net profit or (loss). Self-Employment tax is calculated and flows to Schedule 2 Line 4, and on to Form 1040/1040SR.

If you have updated your Schedule K-1 entries and still have no SE Tax on your 1040, please provide another token for a diagnostic copy (instructions below).

Or, if the experience you're reporting is in TurboTax Business, please provide a token for that return instead.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, here are the instructions: 

Go to Online in the TurboTax header. 

1. Choose Send Tax File to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear. 
3. Reply to this thread with your Token number.  

This diagnostic copy (numbers only; no personal info) of your tax file will allow us to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

[OldCarGuy]

thanks for your quick reply -- yes the K1s were reentered and are flowing through BUT nothing in the SE line??

--will send a diagnostic copy asap

[OldCarGuy]

copy sent

Jim

[PatriciaV]

@OldCarGuy  Please post the token number in this thread.

[OldCarGuy]

943117

[PatriciaV · Accepted solution]

Thank you. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

[PatriciaV]

@OldCarGuy  We're having trouble accessing that token. Would you please try again? Post the new number here. Thanks!

[OldCarGuy]

943177

should i send again?

[PatriciaV · Accepted solution]

Thank you for the correct token number. Here is what we found:

Sch SE-S has $7,500 on Line 2, which is coming from Schedule C, assigned to Spouse. There is no amount on Line 2 for Sch SE-T.

None of the K-1s have info on Line 14. They are all assigned to Taxpayer, one as GP, the other two are LP.

If you expect Self-Employment income to be flowing from any Schedule K-1, you will need to update these forms to show codes and amounts on Line 14. Also confirm who should be shown as the Partner for each K-1. You may find it easier to make these changes in Forms mode:

1. Click Forms in the TurboTax header
2. Scroll down to K-1 Partner (there are three) and click to open in the large window.
3. For each K-1, verify the info in Part II (Information About the Partner), especially the boxes above Line E and the box checked on Line G.
4. Scroll down to Part II Line 14. Click the Code box and choose A (Net earnings from self-employment) and enter the amount under the Amount column.

However, if the K-1s you received DO NOT show amounts on Line 14, you will need to revise the business return (if not already filed) or amend (if already filed).

[OldCarGuy · Accepted solution]

thanks for looking this over

Jim

[OldCarGuy]

Patricia, I had to go back the TT Business sys that prepared the K1s

-- I can't get any of my wife's share of LLC earnings to show up on L14??

This the first year (i think) that the sys asked me if the partner was my spouse -- could that affect this?

[OldCarGuy]

I entered the SE income manually on the "forms" page -- will ck my 1040 next

[OldCarGuy]

all flowing now -- partner boxes make a big diff

Partnership return OK now too

BUT the answer is worse than i thought -- not your fault

--ive been chasing this for weeks because i knew the end result was wrong

thanks

again