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Returning Member
posted Mar 5, 2020 6:38:11 AM

Why does TurboTax Kentucky Form 740, tax K-1 amounts twice? KY Schedule M, line 2 Schedule K-1 is taxed twice if K-1 info entered on this line.

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1 Best answer
Expert Alumni
Mar 5, 2020 11:24:17 AM

Schedule M is used to adjust your income for Kentucky state tax purposes. You should not enter anything on line 2 of Schedule M unless there is a difference between the federal taxable income from K-1 and the KY taxable income from K-1.

 

For instance, if your Ordinary income from line 1 of your federal K-1 says $5000 and the Ordinary income from line 1 of your KY K-1 says $5000, there is no difference so no additions to income should be entered on Schedule M. 

 

To correct your return, review your state and change your answer to this question.

 

 

 

2 Replies
Expert Alumni
Mar 5, 2020 11:24:17 AM

Schedule M is used to adjust your income for Kentucky state tax purposes. You should not enter anything on line 2 of Schedule M unless there is a difference between the federal taxable income from K-1 and the KY taxable income from K-1.

 

For instance, if your Ordinary income from line 1 of your federal K-1 says $5000 and the Ordinary income from line 1 of your KY K-1 says $5000, there is no difference so no additions to income should be entered on Schedule M. 

 

To correct your return, review your state and change your answer to this question.

 

 

 

New Member
Apr 16, 2022 11:41:44 AM

THANKS