Where do I report my personal home and office expenses as all my income is reported on K-1 statement by the company who I consult for. I work from home only. Sch C?

[PatriciaV]

Please clarify if you are an owner of the company that sends you Schedule K-1. Are you paid W-2 wages from this company?

[Carl]

Generally, a K-1 is sent to an individual who has ownership in, or a share of ownership in a partnership, multi-member LLC, or S-Corp. Now with an S-Corp, an owner can also be a W-2 employee.

You need to clarify the type of business , as well as your ownership relationship, and work relationship with the business that sent you the K-1.

[LalG]

The company is an LLC and I believe i am classed as a general partner. (No W-2, or NEC)

I get paid Gross and the llc issues Schedule K-1 in May/June. The K-1 data (Box 4, Box 13 and Box 14) is easy to enter in TT.

However, I work remotely from home in a different state and I am referring to those expenses. TT creates Schedule C  for those expenses (utilities, office etc.). Is Sch C the correct one is my question? 

[LalG]

Not an owner - but classed as a General Partner. No W-2 or NEC issued. Only K-1

[PatriciaV]

What you are describing are Unreimbursed Partnership Expenses. Whether or not you consider yourself to be an owner, you received a K-1 with self-employment wages in Box 14 Code C. This may allow you to report expenses that were not reimbursed by the partnership.

If Schedule K-1 came from Form 1065, and you were required to pay these expenses under the partnership agreement, you may report your expenses on Schedule E (Partnership Income) as "Unreimbursed Partnership Expenses" (UPE). In this case, TurboTax will ask you about UPE, with follow-up entry at the end of the Schedule K-1 input.

But if the partnership agreement specifically states that the partnership has a non-reimbursement policy when expenses are incurred outside of the partnership or that it does not specifically require partners to pay for certain expenses, the deduction may be disallowed at the partner level. 

See instructions for Form 1040, Schedule E for more info from the IRS.

If you qualify to report Unreimbursed Partnership Expenses, you will enter this during the interview for the related Schedule K-1.

1. Go to Income >> Schedule K-1 >> Start/Update
2. Choose Partnership/LLC and Add or Edit your K-1.
3. Follow the prompts to a page titled "Describe the Partnership."
4. Check the box for "I am required to pay supplemental business expenses on behalf of this partnership/LLC for which I am not reimbursed."
5. Answer "yes" to the question about "...your own pocket?".
6. Answer "yes" to the question about vehicle expenses (if applicable).
7. You will be given the opportunity to report other expenses on subsequent pages.
8. Be sure to report any reimbursements you received from the partnership.
9. Continue back to the K-1 Summary page to save your entries.