My question relates to the self-employment section of Turbo Tax. In the years 2020 and 2021 I had a company that was run as a sole proprietorship. In 2022 this company transitioned to an S-corp. Here’s the short of it:
2020 - 2021: The company filed as sole prop on our Schedule C. The 2020 tax year had a tax loss on the Schedule C of under $500. The 2021 tax year had a small gain.
2022: First year filing as s-corp after converting last Aug. On the corporate level, the 1120s and the K-1 included on our return. The K-1 shows a gain.
Here’s the issue. After adding the K-1 in Turbo Tax to our return I removed the self-employment/schedule C section for 2022 since it was all on the K-1 now. When I did that it caused my taxes due (fed and state) to jump up by over $2k combined. Prior to deleting this section I had entered zero new 2022 self employment info. The only numbers showing inside of Turbo Tax on the main income screen were in the 2021 column. So I am very stumped as to what caused the jump. The only thing I can think of is it was carrying something over from 2020 or 2021, but I have no idea what that would be given the gain/loss from each of those years.
Any help in tracking down what caused this is greatly appreciated.
