topic Re: Form 7203 in Get your taxes done using TurboTax

Form 7203

rivki75 — Mon, 09 Mar 2026 10:51:21 GMT

It seems there is something wrong with the software relating to the Form 7203. I have a loss on Ln 1 of K-1 from 1120S return. So because it's negative I can't enter in on Line 3a in Part 1 per instructions. That is blank or 0. The instructions say to enter negative numbers in Part III - That is Line 35 for losses reported on K-1 Line 1. The program however is telling me I have an error because I entered a negative number on Line 35 _ Part III - yet that is what the instructions say to do.

The form appears to be correctly filled out but I can't get rid of the error - however, the numbers are flowing through the tax software properly so that the loss is properly showing up on Schedule 1 Line 5 and on the 1040.

I am just going to ignore the error notice - but it needs to be fixed.

Re: Form 7203

AliciaP1 — Thu, 14 Apr 2022 16:43:50 GMT

It is instructing you to enter the negative numbers from your K-1 as positive numbers in Part III where losses are reported.

You can see S Corporation Stock and Debt Basis for more information about how to enter your amounts on the form.

Re: Form 7203

rslobins — Thu, 13 Oct 2022 00:48:31 GMT

VERY WRONG ANSWER!

If a K-1 reports a loss, then the loss goes into Line 35, column A as a positive number and Line 3a needs to contain zero. ZERO is NOT a negative number!!!! If no negative numbers are allowed on Form 7203, then you need to put in the logic

IF <quantity> < 0 then <issue error/check message>

I am an IT professional of 45 years' experience and get paid for this work. I resent paying a company money and then my time dealing with this nonsense that a junior programmer/analyst could detect and fix.

And I am trying to keep this discussion civil. I am now stuck and would really like file my 2021 Form 1040 correctly right now, and not at the stroke of midnight at the deadline.

Furthermore, if your VRU states that there are representatives available at until 21:00 Pacific TIme, then do NOT throw an apology in my face stating that no one is available at 17:15!!!