There is what appears to be a possible bug/error in the computation for Net Income in Form 1065, Schedule M-1 that is new to the 2022 edition of Turbotax. SEP-IRA contributions are incorrectly included as an expense, thus lowering the Net Income for the business. In this case, the business is a partnership with no employees. The source for the incorrect value is Line-1 on Page-5 of Form-1065 which (per IRS instructions) instructs that Net Income should be the sum of Schedule K, Lines 1-22, less the sum of lines 12 - 13d (and line 21). The SEP-IRA contribution is Line-13R & should not be included. Previous Editions of TurboTax-Business performed this computation correctly.
Any advice or suggestions are appreciated
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TurboTax is correctly showing Net Income on line 1 of page 5. The issue is that there really is no line 13R on Schedule K. Line 13 has lines a through d. The TurboTax "Forms View" is an expansion of the Form 1065 Schedule K, and shows multiple items that could possibly appear on line 13d. If you do a print preview of Form 1065, you will see that the Retirement Plan Contribution that appears on Line 13R in Forms View, is actually on Line 13D of the Form, with a notation of "Type: Pensions and IRAs". TurboTax is correctly subtracting that amount from the sum of Schedule K, Lines 1-11.
TurboTax is correctly showing Net Income on line 1 of page 5. The issue is that there really is no line 13R on Schedule K. Line 13 has lines a through d. The TurboTax "Forms View" is an expansion of the Form 1065 Schedule K, and shows multiple items that could possibly appear on line 13d. If you do a print preview of Form 1065, you will see that the Retirement Plan Contribution that appears on Line 13R in Forms View, is actually on Line 13D of the Form, with a notation of "Type: Pensions and IRAs". TurboTax is correctly subtracting that amount from the sum of Schedule K, Lines 1-11.
If you enter Forms Mode, open Form 1065 (pg 4-5), and scroll down to M-1, you should see two checkboxes in the Smart Worksheet (Item E). Check the lower checkbox and enter your figure on Line 1 (M-1).
Thank you - Your explanation was helpful.
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