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Returning Member
posted Apr 11, 2022 6:17:40 AM

TurboTax won't e-file with Indiana K-1 that has a negative final value

Due to the closure of a family member's estate, we received an Indiana K-1 on which the sole information communicated is a negative gross income value.  By the nature of the K-1 form, this negative entry carries forward to the final line of the form.  This negative entry on the final line of the K-1 is preventing my e-filing from getting submitted to the state, so I need a resolution right away.

This K-1 was professionally prepared so there is reason to believe this is a proper presentation of the information present.  Also, as I understand it this negative outcome could be useful to someone with certain circumstances on their taxes as it could be used as a deduction for such a case.  We do not have circumstances that would allow us to use this so in effect the facts of this K-1 are inconsequential to our tax filing for this year.  But the fact that it is preventing our e-filing is a problem.

I have found discussions in the TurboTax information posting boards that conclude TurboTax has a known problem with this specific circumstance ("Turbotax 2019 does not allow negative number in Indiana K-1 form line 19", posted ‎July 5, 2020 4:26 PM).  As it stands, with no other information available to me I will have to mail in a paper copy of my Indiana taxes, and because of this would need to be refunded the e-file charge for the state tax filing.

Can anyone please:

(a) Confirm the negative value on the IN K-1 is not an issue and that the e-file decline I am getting from TurboTax is not proper?

(b) How can I get a refund on my e-file service payment since I will have to submit a paper copy to the state instead of e-filing?

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1 Replies
Returning Member
Apr 11, 2022 6:25:31 AM

This is the error message sent while trying to e-file: