If you participated in the activity for more than 500 hours during the year, you are generally considered to have "material participation" that qualifies for non-passive income treatment. There are additional tests here: IRS Pub 925 - Material Participation.
While you can change your answer to the material participation question in the Schedule K-1 interview this year, you would need to amend prior year returns to make the change retroactive. Amending your returns would also affect the passive loss carryovers from those tax years.
You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment. To file a new prior-year return for tax year 2023, 2022, or 2021, you'll need to purchase and download that year's TurboTax software for PC or Mac. Returns for tax years 2020 and earlier are no longer eligible to be filed through TurboTax.
This is a complex and tedious process, and you may consider upgrading to TurboTax Live, an online service that provides step-by-step guidance from a tax expert whenever you need assistance, either over the phone or by screensharing.
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