K-1 Form

[Lawrence333]

I have spent over 5 hours and with multiple techs trying to resolve the following-interest income on K-1 is not carrying to area for passive income which in turn transfers information to Schedule E. Same problem from last year which resulted in filing amended return. Have been a TT customer for years but will be forced to seek alternative software. Completely dissatisfied-

[Anonymous_]

Do you have interest income reported on Line 5 of a K-1 you received?

If that is the case, page 2 of Schedule E should show zero in the passive income section; the interest is reported on Schedule B.

[Lawrence333]

Entered into TT in response to question-Did you receive a K-1? I did and had to enter the following-Box 14 and then Code E (net investment income) which carries over to K-1 Worksheet but not in the Passive Income Area which would carry over to Schedule E. There is note on the K-1 Worksheet that cautions IRS compares K-1 you receive with Schedule E.

[Anonymous_]

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@Lawrence333 wrote:

I did and had to enter the following-Box 14 and then Code E (net investment income) which carries over to K-1 Worksheet but not in the Passive Income Area which would carry over to Schedule E. 

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It is not supposed to carry over to the Passive Income Area on Schedule E. 

That entry (Line 14 with an E code) is to calculate the net investment income tax on Form 8960.

[Lawrence333]

No form 8960 generated-should carry to Section Three of Worksheet as passive income (specifically for Trusts). I believe 8960 is for another type of income generated by K-1 (maybe business or rental prpoerty)

[Mike9241]

interest income on a k-1 even if eaned from a passive activity does not go on schedule E. it remains portfolio income and should transfer from the K-1 to schedule B.

[Lawrence333]

Schedule E.pdf (1.2 MB)

K-1 Worksheet.pdf (693 KB)

I have attached both documents generated by TT after answering yes to questions-Did you receive a K-1. The figure does not carry over to Schedule B as you stated. I could manually add to Schedule B but why are the attached forms generated? Do you suggest either not answering yes to question on receipt of K-1 and just deleting forms from return?

I would like to discuss via call to my cell at [phone number removed] if possible

[Anonymous_]

Schedule B will be generated only if you had over $1,500 of taxable interest or ordinary dividends.

[Anonymous_]

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@Lawrence333 wrote:

I would like to discuss via call to my cell at [phone number removed] if possible

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No one can call you, but you can contact Support via the link below.

What is the TurboTax phone number? (intuit.com)