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Hello For the past three years, I manually entered my tax information related to my shares in Enterprise Products Partners L.P. into TurboTax. However, just recently, I learned that instead of entering the data manually, I can download the tax package as a TXF file to my computer and import it directly into TurboTax. After importing the TXF file, I went to the Federal Taxes section in TurboTax. From there, I selected Wages & Income, then Business Items, and clicked on Schedule K-1 to input the necessary information.   Under the Partnerships/LLC section (Form 1065), I clicked on Update and reviewing the relevant information for the Schedule K-1. After importing the TXF file, I noticed that there are two entries for Enterprise Products Partners L.P.—one for last year and the other for the current year, even though I only expected one entry. I verified the data from the file I just imported, and everything was entered correctly. However, when I compared it with the old file from last year, I noticed that the old file includes Report Carryovers—Regular Tax, Report Other AMT Carryovers, and Report Qualified Business Income (QBI) Carryovers, but the new file does not contain this information. My question is whether I should delete the old file and start using the new file going forward, so I can simplify the process and just import the data each year. I want to make sure that by using the new file, I won’t miss any important carryover details that could affect my taxes. Alternatively, should I continue using the old file to ensure those carryovers are properly accounted for? Thank you

It's not for filing or paying late.  It doesn't have to do with last year's tax return or not paying estimates for this year.  The penalty is an "estimated" amount.    It's a penalty if you owe too much or for not paying in enough withholding during the year or not paying in evenly.  Even if you are getting a refund you can still owe a penalty.   You might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you.  It's form 2210.   It's under Federal or Personal (for Home & Business Desktop) Other Tax Situations Additional Tax Payments Underpayment Penalties - Click the Start or update button

Here is how you should report this in TurboTax correctly so you won't get charged for the added income.    To remove the $500 from your taxable wages:  Go to Wages & Income > Less Common Income > Miscellaneous Income. Select Other reportable income. Enter a description like: "W-2 Adjustment - Foreign Source RSU (Rev. Proc. 2004-37)". Enter the amount as a negative number (e.g., -500). This pulls the $500 out of your Adjusted Gross Income (AGI) on Line 1 of your 1040. Since you are adjusting a W-2, you must attach a statement to your return.    The name of the employer.  The total RSU grant amount. The calculation of the US vs. UK work days during the vesting period. Reference to Article 14 (Income from Employment) of the US-UK Tax Treaty. TurboTax does not support the filing of attachments. After completion, you will need to print and mail your return in accordance with the mailing and filing instructions TurboTax provides.      

Hello, For the past three years, I manually entered my tax information related to my shares in Enterprise Products Partners L.P. into TurboTax. However, just recently, I learned that instead of entering the data manually, I can download the tax package as a TXF file to my computer and import it directly into TurboTax. After importing the TXF file, I went to the Federal Taxes section in TurboTax. From there, I selected Wages & Income, then Business Items, and clicked on Schedule K-1 to input the necessary information.   Under the Partnerships/LLC section (Form 1065), I clicked on Update and reviewed the relevant information for the Schedule K-1. After importing the TXF file, I noticed that there are two entries for Enterprise Products Partners L.P.—one for last year and the other for the current year, even though I only expected one entry. I verified the data from the file I just imported, and everything was entered correctly. However, when I compared it with the old file from last year, I noticed that the old file includes Report Carryovers—Regular Tax, Report Other AMT Carryovers, and Report Qualified Business Income (QBI) Carryovers, but the new file does not contain this information. My question is whether I should delete the old file and start using the new file going forward, so I can simplify the process and just import the data each year. I want to make sure that by using the new file, I won’t miss any important carryover details that could affect my taxes. Alternatively, should I continue using the old file to ensure those carryovers are properly accounted for? Thank you

@jessicajude wrote: Hi David,    Do you have any guidance when the plan servicer refuses to amend the 1099R? Backstory... my husband's role was eliminated March of last year. He did go back to work for the same employer after being off work for ~6 weeks. However, payroll did not resume loan payments until the loan was already defaulted in the July timeframe. Since the loan payments were being withheld from his paycheck from that point on, it was quite a surprise when we received a 1099R for the full defaulted loan amount (with code L in box 7). Through research, I came across the QPLO, which I believe this qualifies for as it was due to termination. However, Empower, the servicer of his 401(k), has been no help whatsoever. They have no intention of complying with the QPLO guidelines per the IRS. We have called multiple times and the "backoffice" will not have anything to do with a QPLO. They are telling us we should handle with an accountant. It's been very frustrating and we are at a loss in how to proceed. The tax liability is ~$10,000. Do you have any guidance on how to handle? @dmertz    [edited] OK, I'm updating my answer because I see in your question that the distribution was code L, not code M (you are responding to a post about code M and I did not see code L in your question.)   Given this was code L, and the timeline, I agree with @dmertz 's analysis.

Thanks for this tip! I had the exact same issue today (return rejected due to the Enabling Property calculation error), and this same fix worked for me. I went into the Forms view and manually checked the "No" box in Line 25 for the Enabling Property question. My federal return was just accepted after this fix!

The following article can be helpful to walk through your steps as you review it as well. This is a TurboTax FAQ and more likely to lead you to the right path. How do I enter a Backdoor Roth IRA conversion? Do not change your tax return until you read all the instructions. TurboTax needs to know the original numbers and the corrected numbers to provide the correct end results before you prepare it.   If you want to make changes or add a document to a tax return that has already been filed and accepted by the taxing agency, you should follow these guidelines.    You must first wait until the initial return is completely processed. You will have to use the same TurboTax account that you used for the original tax return. Once you begin your amendment, you'll see your original return. The refund calculator will start new at $0 and only reflect the changes in the refund or tax due Only make changes to the areas of your return that need to be corrected. 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 Amend a tax return for the current tax year   @wanderlust