Where to enter the Oregon K-1 information from Schedule OR-K-1

[GeoffreyG]

The answer to your question is that you will enter your Schedule K-1 (for Oregon) in the federal side of the TurboTax program, just as you would with any other K-1.  To do this you can locate the Find / Search box in TurboTax, type in the exact search term "k-1" and click the button.  Then you can click on the Jump To link that will appear directly beneath in the search results.  This will take you to the main interview screen where you can input your Schedule K-1 data.  Please see the screen-capture image directly beneath this text for a visual illustration; simply click the picture to open.

If you are a full-year Oregon resident, then this completely takes care of your issue for the following reason.  As an Oregon full-year resident, your Oregon tax will be based on the amount of your federal income (with a few adjustments).  What this means for a Schedule K-1 entry is that the income from this item will be taxable on both your federal and Oregon returns.

If you are a part-year Oregon resident, or an Oregon nonresident, on the other hand, then you will need to be careful as you proceed through the Oregon part-year or nonresident tax return.  You will be asked at some point there if your K-1 income is "Oregon-source" or not, and if so then how much.  You will need to answer those questions appropriately.

Similarly, on any other state tax return in TurboTax, you will need to remain mindful of the Oregon-source nature of this Schedule K-1 income, and then answer the questions carefully in the software program.  This process would be very much the same as W-2 wage income earned in one state versus another state.  You just need to be watchful that such income is being taxed by the "right" state or states.

In the case of this Schedule K-1, it will be Oregon-source income, entered initially on the federal side of the TurboTax program (just like wage income always is).  And the allocation of that income, among states, only becomes relevant if the taxpayer is a part-year or nonresident of the state in which the income is sourced.

Thank you for asking this question.

[bclee]

In the 2016 Oregon state part of TT Deluxe, under Your Additions to Federal Income, it will ask you about Fiduciary adjustment from an Oregon Estate or Trust that may show up on an Oregon K-1 from an estate or a trust.  Entering a number here places it in 'code 132 Accumulation disribution from a trust', but it seems like it should go to 'code 133 Fiduciary adjustments from Oregon estates and trusts' since that's what TT asks about.  I don't know that it matters from a math standpoint as either code category seems to affect the total tax by the same amount.

[usagilau]

I received an OR-K-1 for my 2022 tax return. I am not able to find anywhere in my turbo tax (home and business) to make such adjustment. I can find the K-1 adjustment for my CA return but there is no such option under OR. The only options available are Oregon Depreciation Differences and Oregon Passive Activity Loss Differences. 

[DaveF1006]

First you will enter this into the federal portion of your return.  I see where you may have done this since you found where to make the adjustment in your California return.

It's a little tricky to enter this k-1 as Oregon income.  It was straightforward for California because once you entered the adjustment, the exclusion of the income was reported in Sec B line 5 in the SchC/E/F adj in the California return.

For Oregon however, you need to enter this k-1 income as an addition to income.

• Go to the page that mentions here is the income that oregon handles differently.
• Go to misc adjustments>other additions
• Then answer yes in the next section
• You won't see this adjustment in the list of entries given but check the box at the bottom indicating you have an addition to oregon income that has not been entered
• Now you will see other addition statement.
• Scroll down in the statement where you see Partnership and S-Corp modifications for oregon and enter your k-1 income here. If this K-1 was issued by a trust or estate, scroll further down in this statement where you see fiduciary adjustments and make your adjustment here.

@usagilau 

[plawlor78]

@DaveF1006, I'm a nonresident of Oregon. Where and how do I enter Oregon carryforward losses from last year? 

[RobertB4444]

When you start your Oregon non-resident return (which you should do BEFORE you do your resident return for your home state) you will be prompted to look at all of your income and losses and say which ones are Oregon related and which are not.  You will have an opportunity towards the end to enter any income for Oregon that is not on the federal return.  That is where you can enter the carryforward losses.  

Keep in mind that if you did the return with TurboTax last year that the losses should already be on there so it may not be necessary to enter them.  Make sure to double check.

@plawlor78 

[plawlor78]

Thanks @RobertB4444 

Do you have a screenshot from the TurboTax interview of where I enter this?

Also, where in the forms should I see it show up (again, a screenshot would be great)? Which form and line?

[PatriciaV]

Here are screenshots from TurboTax Desktop:

The related Passive Activity Adjustment Worksheet is not an IRS form.

@plawlor78 

[plawlor78]

Thanks @PatriciaV. So you are saying that I should enter my Oregon carryforward losses from previous years into the  Passive Activity Loss Differences?

@DaveF1006's response has mentioned putting it somewhere else I believe. Should I ignore that?

In addition, @RobertB4444 mentioned that "Keep in mind that if you did the return with TurboTax last year that the losses should already be on there so it may not be necessary to enter them.  Make sure to double check." Where do Oregon losses from previous year flow into the current year?

[plawlor78]

Any help from the experts on my questions above? @PatriciaV @RobertB4444 @DaveF1006 

[RobertB4444]

Oregon follows the federal rules when it comes to passive activity losses.  So the losses should be entered in to your federal return and show up on form 8582.  Because the losses are suspended you only need to show the loss for each year on the current return and then carry the losses forward on the federal return until you can take them.  Follow @DaveF 's instructions to make sure that your losses for the current year are shown on the Oregon return.

@plawlor78