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Get your taxes done using TurboTax
Yes, you can adjust the allocation of self-employment earnings in Forms Mode by entering an offsetting adjustment for the Self-Employment Earnings allocation.
- Open your return and click the Forms icon in the TurboTax header.
- In the forms list on the left, find Sch K Reconcile.
- Click the form name to open it in the large window.
- Click the Print button at the bottom of the form to print this, as you'll need the numbers in the third column (14A Net SE Earn/Loss) for the next step.
- Find Sch K-1 Wks and click to open. Note that this form has an embedded slide bar on the right side. Use this to move from one partner to another.
- In the right column, for Special Allocations >> By Amount >> Box A, enter the amount for this partner from Sch K Reconcile with the opposite number sign (enter a negative number if Sch K Reconcile is positive and vice versa).
- Repeat for all partners. Total entries for Box A should match the total for column 14A on Sch K Reconcile.
- Look for SE Earnings Wks and click to open.
- On Line 4d, enter the letter A in the small box, then enter in Column A the total from Sch K Reconcile with the opposite number sign (this is the offset to Line 3c).
- Confirm that the number in Column B Line 5 is zero.
- Go back to Sch K-1 Reconcile and confirm that the 14a column is all zeroes. If not, you need to go back to Sch K-1 Wks and correct your entries for the special allocation amounts.
- If you wish, you can review each Schedule K-1 to confirm that no self-employment earnings appear in Box 14 A.
- When finished, click Step-by-Step to return to the main screens.
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March 21, 2023
7:47 AM