Schedule K-1 Form 1065 Box 20 Code AJ seems to require form 3468 which is not applicable for a none oil/gas/energy businesses.

The incorrect identification of Box 20 Code AG/AJ will be addressed in a forthcoming update. We recommend signing up to be notified when the update is released: Why am I receiving an error in TurboTax for Schedule K-1 Box 20 when code AJ is selected?

However, since this information will be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return), you have the option to omit the code and the amount(s) from Schedule K-1.

I'm wondering how long an update will take for this issue to be resolved.  Seem like many have reported similar issues related to the Box 20 Code AJ requiring form 3468 some time ago so I'm wondering how we can track an ETA.  It would be nice to see problems identified and get a timeline for all ETAs on resolution so we can track progress.  It would be nice if a link for resolutions was on the software under HELP at the top.

Link is broken

Removing code in Box 20 AJ did NOT fix the problem. It still generates the additional form which is not required for oil and gas partnerships (that do not  qualify for tax credits ).  

Your suggestion does NOT work.  You said "you have the option to omit the code and the amount(s) from Schedule K-1."   I did two things:   1) I removed the amount in Box 20 Code AJ, then went back and deleted Form 3468.  I my case I own two Oil and Gas Partnerships, so I did this for each partnership.  After doing so, it still insists on me filling out a Form 3468 for each Partnership.  You'd think by editing and removing any amounts on Box 20 Code AJ that it would stop requesting that I apply for a tax credit (that doesn't apply to me) and fill out a Form 3468

I also tried yesterday to omit the code and amount from my k1 and still receive the same errors.

If you are using TurboTax for Desktop and can use Forms Mode:

Check K-1 Partner for this entity. Make sure there are no entries for Form 3468 under Part III Credits.

Open Form 3468. Delete anything in the Description box. Review the entire form to be sure there are no other entries. Then delete Form 3468 if it is still on the forms list (usually this removes the form automatically).

@jerryboda 

@pa68 

@BrettS18 

@Dibert 

I did exactly what you just suggested step by step.  I removed Box 20, AJ amount on the K-1.  On Form 3468 I had to "override" the amount coming from Box 20, AJ to make sure I could clear all items on Form 3468.   The K-1 Additional Info had the same info so I had to check a box that said "Do not generate Form 3468 so I checked that box.   I thought it was going to finally work but when I run the "RUN FINAL REVIEW" it generates Form 3468 all over again.  The form is completely blank now that I deleted all information on it on Part 1, items 6 thru 14 it wants me to answer 13 questions that are highlighted in Pink color.

I checked form 3468 and it is empty and not showing on the forms list, yet Federal smartcheck gives me 11 errors all saying there is no entry.  I could say NA on the 3468 form for everything, yet the Facility Registration number is required.   Turbo Tax prompts up front if this is a gas/oil LLC, and I said No, but I wonder if that is the problem where whatever "no" does is not taking effect.   We've been stuck for weeks now.  Can we try another strategy?  Thank you!

It would be helpful to have a TurboTax ".tax2023" file to test further.

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

In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose File >> Share.)

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 and tag (@) the Expert requesting the token from you. Please include any States that are part of your return. 

We will then be able 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. 

@jerryboda 

@Dibert 

TOKEN #1213404

Patricia V.

I am not the originator of the thread but I too am not able to escape the requirement for the inapplicable form 3468.  My TurboTax software updated yesterday 3/18/24.

@meisling Thanks for the token. It may be a few days before we have a response.

You should be able to resolve this and delete Form 3468 as follows:

1. Return to the K-1 Summary page.
2. Edit the first Schedule K-1 Box 17. 
3. Enter only one line for Code AJ and do not enter an amount.
4. Continue to the page that asks for Other Information Detail (which may remain as you entered it before). Enter a description and amount separately for both lines from Code AJ.
5. Continue back to the K-1 Summary page and repeat these steps for the second K-1.
6. Run Review/SmartCheck.
7. If you receive a request for the registration number, enter TMXXX99XXXXX. 
8. Delete Form 3468 (either in Forms Mode using TurboTax for Desktop or using Tools >> Delete a form in TurboTax Online).
9. Run Review/SmartCheck to confirm the error has been resolved.

These steps are easier if you are using TurboTax for Desktop, as you can make edits directly in the forms and easily see what forms have errors (red exclamation marks). But it can be done in TurboTax Online.

@meisling 

Additional Information:

• How do I view and delete forms in TurboTax Online?
• How do I delete a tax form in the TurboTax CD/Download software?

That did not work.  All it did was to give me another error that line 17 needed a number.

What did work is I entered TMXXX99XXXXX in the form 3468, then checked everything NA, then SmartCheck worked.  Then I removed form 3468 and the Smartcheck still worked. 

Worked like a charm.  Thank you so very much for the quick response! 

I probably spent 10 hours trying to figure that out.  I've been using TurboTax for nearly 20 years and never even knew that "Forms Mode" existed.

I didn't ever have a form 3468 and it was still giving me an error and preventing me from filing.  I entered the details on line 6 under "other" so it had something to total and it worked.  (amounts not shown here)

Turbo tax forcing this: Box 20, code AJ
Aggregate Business Activity Gross Income or Gain
Aggregate Business Activity Deduction

We had NO gasification/coal activity, only solar cookers

I'm seeing the same problem.  The Turbo Tax K-1 issues have been holding up my filing and costing me lost interest on my refund every day for weeks now.  When will this be fixed TurboTax???  Problems stems from AJ entries in Box 20 on the K-1 form that in turn require nonsensical inputs about Gasification for an energy credit form 3468 that is not needed.  There is no way around the software error, and it prevents all with this situation from filing.  Stop ignoring us TurboTax and get this problem fixed ASAP!  PLEASE!!!

Agreed.  The problem has been reported but not prioritized as weeks have gone by and no fix.  If they are under staffed they will lose a lot of loyal customers 

Schedule K-1 Box 20 Code AJ input has been updated. If you are still receiving error messages related to Code AJ, please delete the K-1 entry you have entered and delete Form 3468, then start over as follows:

If you follow the steps below, the information from Schedule K-1 Box 20 Code AJ will appear on an Additional Information worksheet as part of your return. How you use this information is left for you to determine and enter as appropriate. Note that Code AJ is for Excess Business Losses, which would be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return). If this doesn't apply to your tax situation, you may completely omit the following entries.

1. Working through the Schedule K-1 entry screens, check the box for Box 20.
2. Continue to the page to Enter Box 20 Info.
3. Choose AJ - Excess business loss limitation from the drop down.
4. Do not enter an amount here.
5. Continue to the page to Enter Box 20 Other Information Amounts.
6. In the section under "Other Description", enter the Supplemental Information provided with your K-1. Choose relevant descriptions then enter the amount for each line.
7. Continue to back to the K-1 Summary page.

You can review the result in TurboTax for Desktop using Forms Mode.

1. Find K-1 Partner [name of K-1] in the forms list on the left.
2. Click on K1P Addl Info 1 under that form to open it in the large window,
3. Scroll to the bottom of the form to Code AH to ZZ: Other Information.
4. Confirm that your entries for Box 20 Code AJ appear on Line 6.
5. Click Step-by-Step to return to the main screens.

Additional Information: 

• How do I view and delete forms in TurboTax Online?
• How do I delete a tax form in the TurboTax CD/Download software?

@K-1 Headache 

@jerryboda 

Form 1065, k-1, line 20, Codes AJ, Z.  Sent me to form 3468, which refers to Gas and Coal tax credits.  It has nothing to do with my return.  I deleted AJ, left Z, but the same thing happens.  It won’t let me complete my return.  I have seen 100s of online complaints about this exact issue for over a month but TT has not corrected it.  

I had AJ and Z codes.  I deleted AJ and left Z.  The same thing happened.  I can’t complete my return!!

How can you say it's been updated implying that it's fixed?  It is not updated nor is it fixed.  If I have to take all those steps and try to interpret what your instructions are, then it's not an updated fix.  I am having to manually get around a Turbo Tax software issue.  That's not why I chose to purchase turbo tax each and every year for decades.  To me, this is not an acceptable fix. In addition to this, I have been so focused on resolving this one huge software bug, that I've neglected to report a second alarming bug.  The software after getting past suggestions you've provided and I am at the Partnership/LLC/K-1 Summary page and click continue the software wants me to enter information for Estate or Trusts (Form 1041) and I do not have income from an Estate or Trust, so I don't need to fill out information for that.  Yet, it won't move past that input screen for Estate or Trust, so I have to click on a tab to get out of that section.  What it should do is ask did you get a Form 1041 for an Estate or Trust and I can say "No", but it happens every time I get done with the K-1 entry section.   

Why cant I delete Form 3468.  I have the same issue and just want  to delete the Form.   

When will the update that addresses this issue ?