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Schedule K1 box 1 and 14 code A are the same amount(say $1 each). Each one increases my tax owed, but my income report shows $1 total. Is turbotax doubling my tax owed?

I feel like the information in box 14 is making my tax owed increase even though it is not being counted towards my total income.
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3 Replies
IreneS
Intuit Alumni

Schedule K1 box 1 and 14 code A are the same amount(say $1 each). Each one increases my tax owed, but my income report shows $1 total. Is turbotax doubling my tax owed?

No - TurboTax is not doubling your tax owed.  Box 14 with Code A simply indicates how much of the amount in Box 1 is self-employment income.  You have to pay self-employment tax on the amount reported.  [That's why you might think you are being taxed double.]

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Schedule K1 box 1 and 14 code A are the same amount(say $1 each). Each one increases my tax owed, but my income report shows $1 total. Is turbotax doubling my tax owed?

Right, turbotax is reporting I owe $0.15 for self employment tax at the end of the K1 prompt. When I enter K1 box 1 my tax owed increased $0.15, then when I enter K1 box 14 it increases again around $0.15. If I delete my K1 my tax owed drops by almost double what it says I owe for self employment. That is why I am confused.

Schedule K1 box 1 and 14 code A are the same amount(say $1 each). Each one increases my tax owed, but my income report shows $1 total. Is turbotax doubling my tax owed?

I verified with another software suite that this behavior is correct. I don't understand it, but it's not an issue with the software. Thanks

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