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TT software K1 error

I have been working on this for weeks -

our LLC has 3 members

we lost money yet TT included 1/3 of our income as SE earnings

I've checked - we hvae no rental or roalitiy income -- boxes are blank - only service income

I've implimented all the prevous TT comunity answers

 

I think this is a programing error -- what else can i do to get the program to not repot and SE income 

 

 

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3 Best answer

Accepted Solutions

TT software K1 error


@OldCarGuy wrote:

and it shows up on K1 line 14 A but 14C shows a gain = 1/3 of our revenue 


 

That is correct.

 

Code "A" means your profit that you NEED to pay self-employment tax for a profit.

Code "C" is an optional way if you CHOOSE to pay self-employment tax for certain reasons.

View solution in original post

M-MTax
Level 15

TT software K1 error

1-800-446-8848

 

....and it's possible this is an input error.

View solution in original post

TT software K1 error


@OldCarGuy wrote:

do i need to include this number on my K1s 

if yes, must the partners include in their personal returns 


 

Yes and yes.

 

But unless the partners on their personal returns make the CHOICE to use the optional method of calculating SE tax, Box 14C will have no effect on anything.

View solution in original post

25 Replies
M-MTax
Level 15

TT software K1 error

Look at your 1065. Is there a positive number on Line 23?

TT software K1 error

yes -173

M-MTax
Level 15

TT software K1 error

Then that number will wind up on the K-1s on Lines 1 and 14

TT software K1 error

sorry -- you asked if we had a positive number on line 23 -- NO its a negitive 173

TT software K1 error

and it shows up on K1 line 14 A but 14C shows a gain = 1/3 of our revenue 

M-MTax
Level 15

TT software K1 error

14A shows a loss?

TT software K1 error

Schedule K shows this ammount as "no farm income" -- do not understand

TT software K1 error

YES 14 A shows the correct loss

M-MTax
Level 15

TT software K1 error

Nonfarm income. That's the figure you use for self-employment net earnings on your personal income tax return.

TT software K1 error

but how can we have any SE income from an LLC loss??

M-MTax
Level 15

TT software K1 error

I don't know because I can't see your return. Are there any income items in Schedule K of your 1065?

 

You might want to contact Support; they have the ability to see your return with sharing.

TT software K1 error

ok thanks 

--i see a support link above 

TT software K1 error

the link only has "stock" answers -- how to hire an expert

 

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