Schedule K-1 Form 1065 Effect on Tax Refund

iwesterohio — Mon, 16 Mar 2020 21:56:50 GMT

My tax return was completed except I was awaiting my Schedule K-1 Form 1065.

Box1 (Ordinary business income) and Box14 (Self employment earnings) were both losses of over $5,000.

When I entered the K1 info into TurboTaxPremier my Federal refund amount decreased.

I thought the refund amt would increase because of the losses.

Please explain why it decreased insteadof increased.

Re: Schedule K-1 Form 1065 Effect on Tax Refund

MinhT1 — Mon, 16 Mar 2020 22:18:36 GMT

The loss on your K-1 would lower your taxable income and your tax liability. However, it could also lower the Earned Income credit by a larger amount and reduce your tax refund.

However, in this case, you are still required to enter your K-1. You are not allowed to skip it.

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Schedule K-1 Form 1065 Effect on Tax Refund

Re: Schedule K-1 Form 1065 Effect on Tax Refund