TurboTax error says state withholding on IN K-1 should be reported on Federal K-1 also. I have re-entered K-1s. No change. Is this a software error or my entry error?

[jdragoo]

Indiana K-1 shows state withholding.  Federal K-1 does not.  TurboTax error shows that the software created an offsetting negative entry on Indiana Schedule IN-W.

[AliciaP1]

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on the top of your screen and select Online. 

1. Scroll down to and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 

Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.   

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@jdragoo 

[jdragoo]

Token number 1111501

[DanaB27 · Accepted solution]

Thank you, I reviewed your token. Please follow these steps to enter the state taxes withheld during the Federal K-1 interview and to fix the error message:

1. Select "Wages & Income" on the left
2. Scroll down and click "Start/Update" next to "Schedule K-1, Q" 
3. On the "S Corporation K-1 Summary" screen click "edit"
4. Continue until you get to the "Check boxes that have an amount or a checked" screen, select "Box 17 Info", and click "Continue"
5. Continue until you get to the "Enter Box 17 info" screen, select "AD- Other information", and enter the state tax amount ($825) 
6. Enter "Indiana State Income tax withheld" and the amount of $825 on the "Enter Code AD Detail" screen and "Continue"
7. Click "Deductions & Credits" on the left
8. Scroll down "Estimates and Other Taxes Paid" and click "Show more"
9. Click "Start/Update" next to "Income Taxes Paid" 
10. Scroll down to "Withholding not already entered on a W-2 or 1099" and click "Start"
11. Enter the State withholdings

@jdragoo 

[jdragoo]

Thank you.  Thank you.  Thank you.

Your suggested solution worked.  The state withholding was not reported on my Federal K-1, but by including it on LIne 17 of the Federal K-1 under code AD and completing the explanation, that resolved the error with the state return in TurboTax.

Again, thanks!!!!