Schedule M-2, Line 3 Smart Worksheet Pulling Wrong Data?

beanorama1 — Tue, 10 Feb 2026 11:13:36 GMT

I'm doing the Schedule M-1 and M-2 for the first time, so it took me hours trying to reconcile M-2 only to realize that TTB is pulling data from a place contrary to what the IRS instructions say.

In TTB, the Smart Worksheet for Schedule M-2, Line 3, says that the data source is Form 1065, p5-6, Sch M-1, Line 9. It then works some calculations and returns an adjusted net income (tax basis) to Line 3.

Yet the IRS Instructions state "Enter on Schedule M-2, line 3, the amount from the Analysis of Net Income (Loss) per Return, line 1. Generally, this is the same as the amount entered on Schedule M-1, line 9, (if the partnership is required to complete Schedule M-1)."

Maybe TTB is counting on line 9 and line 1 being the same. But on our return, they are not. There's about a $20k difference that would allow my M-2 to balance. And none of the adjustments in the smart worksheet make up that difference (I only found one that applies).

I've seen this before where TTB or TTH&B pull the wrong data. Can anyone confirm this?

Re: Schedule M-2, Line 3 Smart Worksheet Pulling Wrong Data?

NCCG — Wed, 21 Feb 2024 21:00:54 GMT

I'm the original poster, @beanorama1 , using a different account. (I can't access that account since posting it, because Intuit now denies that the user ID we all can see exists.)

The original post is wrong. I misread the schedules. TTB is pulling the data correctly as described in the IRS instructions.

topic Schedule M-2, Line 3 Smart Worksheet Pulling Wrong Data? in Get your taxes done using TurboTax

Schedule M-2, Line 3 Smart Worksheet Pulling Wrong Data?

Re: Schedule M-2, Line 3 Smart Worksheet Pulling Wrong Data?