Thanks.
The AGI did go down. Because I knew I was going to pay a penalty in April and that was going to carry interest, I opted to estimate an amount for the 1065 that was the most it could be -- essentially the amount of money I received on it, and I called it all box 1 with no associated expenses.
It turned out that the K-1 did show expenses, and when combined with how the money was distributed, my AGR went down by by $266. I did not expect that to have the impact it seems to have had -- $162 on the Federal return and $66 on the state return. On the state return, the penalty portion is responsible for $63 of the $66 (from $104 to $41), but on the Federal return it only appears to have gone down by $6. So it's still a little weird to me.
