topic K1 on parnership shows no earned income in Deductions & credits

K1 on parnership shows no earned income

asterof — Mon, 28 Aug 2023 14:45:39 GMT

I am working for a company using my business of consulting

I also have SS and retirement income

I made 120K last year in consulting and filed my business partnership using my business FED ID

I then transferred my K1 for both partners (husband and wife filing joint) to our personal

It indicated I had no earned income

An I doing this wrong. because the business should have shown earned income

Re: K1 on parnership shows no earned income

Anonymous_ — Mon, 28 Aug 2023 18:01:29 GMT

What do you mean by "....I then transferred my K1.....to our personal..."?

There is really no available method to transfer a K-1 created in TurboTax Business to any personal version of TurboTax. Rather, you need to enter the information from your K-1s into the personal version of TurboTax manually.

Also, how did you prepare your 1065 in TurboTax Business?

Do you have figures on Line 14 of your K-1s?

Re: K1 on parnership shows no earned income

dmertz — Mon, 28 Aug 2023 17:58:13 GMT

For the income on the Schedule K-1 to be compensation from self-employment, it must be present on the Schedule K-1 in box 14 with code A.

Re: K1 on parnership shows no earned income

asterof — Mon, 28 Aug 2023 20:00:25 GMT

Rather, you need to enter the information from your K-1s into the personal version of TurboTax manually.

I did enter it Manually

Line 14 was A and C

Also, how did you prepare your 1065 in TurboTax Business?

Do you have figures on Line 14 of your K-1s?

3 hours ago

Re: K1 on parnership shows no earned income

asterof — Mon, 28 Aug 2023 20:06:55 GMT

Re: K1 on parnership shows no earned income

Anonymous_ — Mon, 28 Aug 2023 20:20:39 GMT

@asterof

What, exactly, is the problem? You should see the figure you posted on your K-1 propagate to Line 5 of your Schedule 1 and you should also have a Schedule SE in your forms package.

Re: K1 on parnership shows no earned income

asterof — Mon, 28 Aug 2023 20:48:30 GMT

problem was when I went to enter the contribution to my IRA it indicated I could not deduct it because of I had no Earned Income

Re: K1 on parnership shows no earned income

Anonymous_ — Mon, 28 Aug 2023 21:02:40 GMT

Where in the program are you entering this information?

It should be under Deductions & Credits>>Traditional and Roth IRA Contributions.

Re: K1 on parnership shows no earned income

VolvoGirl — Mon, 28 Aug 2023 21:04:31 GMT

Make sure you are entering each K-1 under the right person. Maybe you assigned both K-1 to only 1 spouse.

Re: K1 on parnership shows no earned income

dmertz — Mon, 28 Aug 2023 21:32:39 GMT

Did you contribute any deductible amount to a self-employed retirement plan? Such amounts and the deductible portion of self-employment taxes reduce the amount available to contribute to an IRA. If the sum of the amount of an self-employment deduction and the deductible portion of self-employment taxes for the individual equals the amount reported with code A in box 14 of that individual's Schedule K-1, nothing is available to contribute to a Roth IRA unless, perhaps, the individual qualifies for a spousal IRA contribution.

Re: K1 on parnership shows no earned income

asterof — Mon, 28 Aug 2023 22:00:20 GMT

No I only have an IRA

I figure we wont find an answer on what went wrong

I filed the business, enetered the correct information into the personals

and it told me it was not deductible because I had no earned income

I figure this is a program bug

Because the business income is earned income

Next year I will show the business income as personal income using my SS number

Re: K1 on parnership shows no earned income

Anonymous_ — Mon, 28 Aug 2023 22:05:47 GMT

@asterof wrote:
I figure this is a program bug

It's not a program bug; it's an input error.

I did a test return using your K-1 figures and an IRA contribution and the deduction was allowed in the program.

Re: K1 on parnership shows no earned income

VolvoGirl — Mon, 28 Aug 2023 22:06:46 GMT

Yes we should be able to figure it out. If you have a partnership you can't file business income as personal under your ssn. You need to enter each K-1 on your personal return.