I just upgraded to Turbo Tax home & Business, assuming it would allow for my unreimbursed partnership expenses to be recognized on schedule E. Schedule E, supplemental business expense worksheet, is showing the UPE and reduces my net self employment income by the UPE. But, on the 1040, the partnership income is coming over without any adjustment for the UPE, so it's computing federal tax on the gross income amount instead of the net self employment income. I am answering yes to the question "does the partnership require you to pay any expenses out of your pocket?" Could I be missing a step to allow the net self employment income to flow through to the 1040?
My state return (NJ) is correctly picking up the UPE and showing the net amount as taxable income. So I can't figure out why the federal is not doing the same.
Any additional help would be appreciated.
