Business & farm

You need to be sure your dependent doesn't need to be filing his own tax return.  Even if he still qualifies as your dependent he may still need to file.  Also, if you marked the Schedule K-1 as "not actively participating", the income is passive and therefore unearned.  See Do I need to file my own taxes if I'm a dependent to verify if he needs to file his own return and still qualifies as your dependent.

To check the entry of the K-1 for active participation you can follow these steps in TurboTax Online:

1. Sign in to your TurboTax
2. Open or continue  your return
   • Choose a section from the TurboTax menu and select Pick up where you left off
3. Using the search bar, type K-1 and select the Jump to link from the search results
   • Note: If the Jump to link doesn’t work, select the Federal tab, then under S-corps, Partnerships, and Trusts, select Wages & Income
   • Select Revisit or Start next to Schedule K-1
4. Answer Yes to Do you want to review Schedules K-1 or Q? and follow the prompts
5. Click Edit for the K-1 and Continue to the Did you participate? screen and verify the answer is yes

To enter in TurboTax CD/Download:

1. Sign in to your TurboTax
2. Open or continue  your return
3. Using the search bar, type K-1 and select the Jump to link in the search results
4. This will take you to the Schedule K-1 and Schedule Q screen
   • Note: If the Jump to link doesn’t work, select Personal, then Personal Income
5. Select I’ll choose what I work on and continue until you reach the screen, Your 2022 Income Summary
6. Select Start next to Schedule K-1 under Business Investment and Estate/Trust Income
7. Answer Yes and follow the prompts
8. Click Edit for the K-1 and Continue to the Did you participate? screen and verify the answer is yes