Upon review, my Form7203, line 3a is blank while my S Corp made ordinary business income, it is not showing on Line 3a. Looks like a bug to me. How could I fix it?

[Mike9241]

the form does not autofill from the k-1.all lines need manual entry when you get to that section.

[derek5880906]

I thought it should be a straightforward autofill. Anyway, I am the online version, could you elevate how to manual entry pls?

[Mike9241]

i use desktop but I think the steps are the same.  note the 7203 who must file

Form 7203 is filed by S corporation shareholders who:
• Are claiming a deduction for their share of an aggregate
loss from an S corporation (including an aggregate loss
not allowed last year because of basis limitations),
• Received a non-dividend distribution from an S
corporation,
• Disposed of stock in an S corporation (whether or not
gain is recognized), or
• Received a loan repayment from an S corporation.

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so if you have income no carryforward losses and the other 3 items also don't apply, Turbotax will not ask for the 7203 info

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if you need to enter it

Federal taxes tab

wages and income tab

choose what to work on (blue icon)

scroll down to the k-1 section  (update)

schedule K-1 answer yes

select S-corp (start)

select your S-Corp (edit)

continue until you get to the7203 page. 

[derek5880906]

None of these applies. As a S Corp shareholder I only had ordinary business income this year and it explains why this time Turbotax didn't ask me. But I suppose if I do not edit and manually input the income, the Form7203 generated and kept by Turbotax will be incorrect because the ordinary income wasn't autofilled?

[Rick19744]

Form 7203 was created by the IRS in order to have consistent basis schedules.

So if you don't input the required information on the form, you won't have an accurate S corp basis amount; unless of course you are maintaining this somewhere else (such as an excel worksheet).

If you don't maintain an accurate basis schedule, then you can't prepare an accurate return as the basis schedule determines what losses are allowable, whether distributions have tax implications, and then ultimately the overall gain or loss upon disposition.

Seems surprising that an S corp that generated ordinary business income did not pay out distributions to the shareholder's to cover the tax on the income.

Regardless, even the instructions to the form 7203 indicate "It may be beneficial for shareholders to complete and retain Form 7203 even for years it is not required to be filed, as this will ensure their bases are consistently maintained year after year."