Just enter the K-1 for the partnership as it appears on the form you received. The capital account adjustments themselves do not generate income.
TurboTax CD/Download
- Click on Federal Taxes > Wages & Income [In TT Self-Employed: Personal > Personal Income > I'll choose what I work on.
- Under Other Business Situations, click on the box next to Schedules K-1, Q.
- Click Yes on the next screen, Schedules K-1 or Q.
- On the Tell Us About Your Schedules K-1 screen. Click on the Start/Update box next to Partnership.
- If you have already entered K-1 information, you will see the Partnership/LLC K-1 Summary screen. Click Add Another K-1 to enter your information (or click on Edit to continue with the existing form entry).
- If you haven't started entering K-1 information, continue through the screens, entering the requested information.
TurboTax Online
- Click Wages & Income.
- In the S-corps, Partnerships, and Trusts section, click the Start/Update box next to Schedule K-1.
- Continue with step 4 above.
