Meal Expenses not being deducted at 100% for Partnership expenses (K-1) for tax year 2022

[brokentiger]

I have business meal expenses that are not reimbursed by my partnership. For tax year 2022, meal expenses should be deductible at 100%. I enter the meal expenses as part of the questionnaire for my partnership Schedule k-1, however TurboTax using the Schedule E Supplemental Business Expense Worksheet only calculates this at 50% (Line 17 in the worksheet). How do I get turbo tax to give me the full 100% deduction.

The only workaround I've seen is to put the meal expenses as part of the self employed business expenses, but this creates a schedule c, which doesn't seem like the right way to do it as this is a partnership and not a sole proprietor. 

[DawnC]

It should be 100%.   I would like to take a close look at your return.   If you could provide a token number, that would greatly help.   It is a copy of your tax return that has all of your personal information removed.  You can send one to us by following the directions below.   In TurboTax Online,

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen. 
3. A drop-down will appear -  Select Tools  
4. On the pop-up screen, click on “Share my file with an agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token number in a reply to this post.

[brokentiger]

Dawn,

Thanks for looking into this. The token number is 1108695

[DawnC]

Thank you for the token number - I will check it out and let you know the status asap 😉

[DawnC · Accepted solution]

The issue is currently being resolved; thanks again for providing the needed information.     You can sign up for notifications here.  

[brokentiger]

Thank you for looking into this. Is it fair to assume this will be fixed before the April tax filing deadline. Also is this issue being fixed for the 2021 tax season (if I want to file an amended return) as the same issue existed there as well (which I only realized after discovering the issue this year). 

Related to that, do I have to use another method to file an amended tax return to submit a claim for the maximum refund guarantee as obviously with this bug existing for last year's taxes. I got a smaller refund as my deduction was only 50% instead of 100%. 

[degatano]

My return keeps getting rejected for this conflict on Schedule E Meals. I’ve tried to correct it and resubmit but has been rejected again and again. Should I wait for an update to correct this software issue? When is this is expected to be corrected?

[PatriciaV]

Yes, sign up to be notified when the deduction calculation has been updated here: Why aren't my meals 100% deductible for my K-1?

While this should be resolved by the filing deadline, you do have the option to request an extension of time to file in case the roll-out is delayed. You can do this within TurboTax by opening your return and using the Search box in the header to find "extension." Click the "jump to" link to go directly to this topic. Or go to TurboTax Easy Extension.

@degatano  

[Gwissi]

This really needs to be fixed before the filing deadline; as the other individual expressed, this has clearly been a mistake that TurboTax has missed for 2 tax years.  It's extremely disheartening that we may be told that we need to file extensions, when we are otherwise ready to file, when this wholly resides within the software - especially for those of us who are now delayed receiving our refunds.  

[degatano]

You are absolutely correct! It is so very frustrating to me!

[Rwinakor]

Same problem for me. Repeated rejections. Says update coming on 4/14. Update came today not sure if connected. Resubmitted and rejected again same thing. TurboTax customer for many many years. Very frustrating. 

[PatriciaV]

This update has not been released. Sign up at this link to be notified when the update is available: Why aren't my meals 100% deductible for my K-1?

Although the update is expected to be released before the filing deadline, you may consider requesting an extension of time to file or file now and amend later.

[PleaseStartaFlatTax2023]

Same here! Even with the update my return is still getting rejected because of the same meal deduction error. I downloaded an update today. Released in the afternoon on 4/13/2023 and I noticed with the update there was some new text prompts in the step-by-step guide to differentiate between 50% and 100% meal deductions. Now on Schedule E line 17 where the instructions say to enter 50% of line 16 it has entered in 100%. 

However my return is still getting rejected with the same error code. 

I'm wondering if this number should be listed on line 21 instead of line 17 and if that is causing it to be rejected. This is disappointing to be experiencing this from such name-brand tax software that I have happily used and recommended for years. Now it's April 14th and the update was of no use and my returns are rejected. Disappointing to say the least. 

Can you please tell us how what cells to manually override so that my return won't keep getting rejected. I can't wait for someone to write the software code to fix this. 

This thread is marked as Solved. The hyperlink to sign up for notifications on this correction is broken and I'm still just as rejected and dejected as I was before this software update. 

--------Sincerely,   Searching for a new tax software for 2023

[Gwissi]

Mine finally calculated correctly after this change, and has been accepted (at least by the Feds)

I don't think you mean your exact Schedule E; I think you mean your Supplemental Business Expenses Worksheet for Sch E, correct?

If you want to force the calculations on this worksheet, you should be able to go to the worksheet itself and do the following:

- Line 12a is the amount of your non-restaurant meals

- Line 12b is the amount of your restaurant meals

- Line 12c is the sum of these two.

- 12a and 12b should flow down and be the same in 16a and 16b.   Line 17 is the calculation you can make yourself if it doesn't calculate automatically (the formula is on the line).  Same for line 18. 

Hope that helps!
That said, I would make sure you dont have anything already overridden that is causing the Step-by-Step instructions not to flow thru...

[dteitelbaum88]

This issue is still not fixed, my printed tax return still shows the old schedule (without the 100% vs 50% distinction), which is very odd.