I'm using TurboTax 2020 Home & Business to do my taxes. I think there is a problem with the Schedule SE Adjustments Worksheet at Part II, line 2. It is supposed to add the amount from Box 14 of Schedule K-1 for non-farm partnerships, which is the box for reporting earned income on the K-1, but instead (or in addition) it is transferring the Section 179 deduction from Box 12 of the K-1.
Section 179 deductions are not earned income (or losses) and should not be included as such on Schedule SE. If I try to override the line in the Worksheet, it keeps telling me there's an error I need to fix before I can file the return.
Am I incorrect in my assumption that Section 179 deductions passed through from a K-1 are not earned income? The IRS Schedule SE only mentions Box 14 from the K-1, not Box 12.
Is this a bug?
Thanks,
Helmut
