Return check flags as an error Part III, Line 7 on my K-1

[Jon_Hanson]

I was ready to file my return when I got an error on my K-1 under Part III, Line 7. This line says "Double-click to link royalties to Schedule E Worksheet." Double-clicking in the space does nothing. The Royalties entry for Line 7 is blank. I cannot figure out how to get past this error in order to file my return.

[PatriciaV]

Your best option may be to delete this K-1 and re-enter. However, also check the K-1 information section to see if you checked more than one type of activity or checked a box other than Ordinary Income. Finally, is this an oil & gas partnership? That might trigger the Schedule E link.

[Jon_Hanson]

I deleted and re-entered all of the K-1 information, but I'm still getting the same error. I wasn't sure about Box 20. Everything is 0 except it says STMT. So I wasn't sure if Box 20 had something in it when it asks you about boxes that have some value in the or are checked. This time I left Box 20 blank but still got the error. Last time I had Box 20 checked but I'm guessing I should have Box 20 checked because there are values on that statement.

I never received a Schedule E from this partnership so I don't know what to put on that form anyway.

I do believe it was an oil and gas partnership that was a stock I bought in 2022.

[Jon_Hanson]

Also, walking through the K-1 screens, I only have "Business" checked because I only have a value in Box 1.

[PatriciaV]

If the K-1 Box 20 shows "STMT," you should have received supplemental information with the K-1. Box 20 reports many types of information that may influence your taxable income. If you didn't receive additional pages or have questions about this information, you should contact the company that provided Schedule K-1.

Completing the entries from Box 20 may or may not resolve the form error you are receiving. If you're using TurboTax for desktop, you may be able to investigate this further using Forms Mode. Once you open the K-1 worksheet and click the Errors icon, more information about for errors will appear below the form.

[Jon_Hanson]

Yes, I can see the highlighted field on the form that's the problem. The problem is that I can't resolve it. It wants me to double-click it to link to the Schedule E worksheet but double-clicking on the field does nothing. I wasn't given a Schedule E with this K-1 anyway.

[AliciaP1]

Your Schedule K-1 entry is reported on Schedule E within your individual tax return.  It seems you may have entered your Section 199A Ordinary Income (loss) on the Royalty Income (loss) line while entering your K-1.

You can get to the section to enter a Schedule K-1 in TurboTax Online by following these steps:

1. Sign in to your TurboTax
2. Open or continue  your return
   • Choose a section from the TurboTax menu and select Pick up where you left off
3. Using the search bar, type K-1 and select the Jump to link from the search results
   • Note: If the Jump to link doesn’t work, select the Federal tab, then under S-corps, Partnerships, and Trusts, select Wages & Income
   • Select Revisit or Start next to Schedule K-1
4. Answer Yes to Do you want to review Schedules K-1 or Q? and follow the prompts
5. This will take you to the Schedules K-1 or Q screen
6. Go through your entries until you get to the We need some information about your 199A income screen and check your entry for XX has business income (loss)

To enter in TurboTax CD/Download:

1. Sign in to your TurboTax
2. Open or continue  your return
3. Using the search bar, type K-1 and select the Jump to link in the search results
4. This will take you to the Schedule K-1 and Schedule Q screen
   • Note: If the Jump to link doesn’t work, select Personal, then Personal Income
5. Select I’ll choose what I work on and continue until you reach the screen, Your 2022 Income Summary
6. Select Start next to Schedule K-1 under Business Investment and Estate/Trust Income
7. Answer Yes and follow the prompts
8. Go through your entries until you get to the We need some information about your 199A income screen and check your entry for XX has business income (loss)