@Anonymous_
Thanks. Yes, I am using TT Business, 1065, and I am entering the amounts under 'Member Retirement Contributions'. My issue was that I was not certain if I had to make the amount I enter under Guaranteed Payments to include the retirement Contribution, or if it had to exclude it.
I also understand that the deduction is taken on the 1040 of the member, and seeing how the entries on the K-1 are treated on the 1040, I assumed that the Guaranteed Payments reported on line 4a of the K-1 had to include the retirement contribution made on behalf of the partner.
But then I was confused about why TT would use BOTH amount to calculate the net earnings for Book purposes in the Income Reconciliation section. But I think I get it now.
