We have confirmed the reporting on Schedule E page 2 as you described. However, this is not a program defect.
Per IRS Instructions for Form 1065 Sch K-1 Box 4a. Guaranteed Payments for Services:
"Guaranteed payments are payments made by a partnership to a partner that are determined without regard to the partnership's income. Generally, amounts on this line aren't passive income, and you should report them on Schedule E (Form 1040), line 28, column (k) (for example, guaranteed payments for personal services)."
Further, per IRS Instructions for Schedule E Line 28:
"For nonpassive income or loss and passive income or losses for which you are not filing Form 8582, enter in the applicable column of line 28 your current year ordinary income or loss (after applying any special rules that limit losses) from the partnership or S corporation. Report each related item required to be reported on Schedule E (including items of income or loss stated separately on Schedule K-1) in the applicable column of a separate line following the line on which you reported the current year ordinary income or loss. Also, enter a description of the related item (for example, depletion) in column (a) of the same line."
Therefore, the amount on Schedule E Part II Line 28 should be the total of ordinary income AND guaranteed payments. We agree that the guaranteed payments should be reported on separate line and that suggestion will be forwarded to our development team to be considered for a future update.
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