PatriciaV
Expert Alumni

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.

 

  1. Open your return and click the Forms icon in the TurboTax header.
  2. In the forms list on the left, find Sch K Reconcile.
  3. Click the form name to open it in the large window.
  4. 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.
  5. 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.
  6. 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).
  7. Repeat for all partners. Total entries for Box A should match the total for column 14A on Sch K Reconcile.
  8. Look for SE Earnings Wks and click to open.
  9. 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).
  10. Confirm that the number in Column B Line 5 is zero.
  11. 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.
  12. If you wish, you can review each Schedule K-1 to confirm that no self-employment earnings appear in Box 14 A.
  13. When finished, click Step-by-Step to return to the main screens.
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