HI Rick19744 ,
Thank you for your input. I would like to clarify and reply to a couple of items:
- The IRS created form 7203 which is required to be included with your personal tax return if you meet certain criteria. Based on the limited information, you need to include this when filing your personal tax return.
- Is form 7203 automatically attached to TT efiling or am I to do this manually? There is no mention of it in TT and was not provided after filing business taxes.
- The income reported on the S corporation Schedule K-1 is not earned income. Your W-2 earnings is earned income, but that is reported separately from the K-1 information as noted by @tagteam.
- This is understood and the W-2 earnings are reported. However, upon inputting the Schedule K-1 information it drastically changes my tax liability. It appears as though Box 1 (Ordinary business income) is now reported as personal earned income.
- As you may know, your personal tax return is now late. Also not sure the timing of TT being able to efile this return; TT will close the ability to efile returns as we get closer to the new tax season. Just not sure when this happens.
- An extension was filed but TT has set a deadline for 10/31 (today). Not sure if this is just a TT-imposed deadline. TT also continues to offer past-year filing options using the desktop version but includes no help or options for tax advisors.
- Based on the questions, it is most likely in your best interest to get some professional help; this minimal investment may certainly outweigh the cost of any potential filing errors. Pass-through entities get complicated very quickly and may easily generate correspondence from the IRS if something looks out of line compared to their internal algorithm(s).
- TT markets itself as a tool for S-corp small business owners but provides little support. Would you recommend these types of taxes be done by a professional and not use TT?
