Box 11 Schedule K1 code O TurboTax error message

Forum|Forum|2 months ago
April 6, 2026
1 reply
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A partner in our partnership called saying they received the following error message after entering the 1065 schedule K1 information related to Code O box 11 (1202 exclusion)

“Check this entry

Sch K-1 Wks Partnerships LL Sch K-1 Partnersip Additional Info 1: Other income fields has no entry. A total of $10,505 has been entered for code (s) I,L to Q and ZZ. Code (s) I,L to Q and ZZ require(s) additional information on the appropriate lines of this section .”

The box 11 has Code O, so the $10,505 is eligible for exclusion for section 1202 gains and is not considered additional or other income. Does this mean the $10,505 should be listed in the K1 from the partnership box 20 as well- if so what code should be used in box 20. I cannot find a relevant code in the IRS instructions. For this particular partner only a portion of the 10,505 is excludable.

The partner is using 2025 desktop TurboTax Home and Business for a macintosh

Thanks for your help!

PatriciaV

Level 15

In TurboTax, Schedule K-1 (1065) Box 11 Code O has a notation that the sale of QSB stock (Sec 1202 exclusion) is not provided for in the program. This means the user must manually enter this sale information on the appropriate form. In most cases, the sale is entered as a stock sale with special treatment. How that is done depends on the software they are using.

However, you can enter additional information for Box 11 using the K1P Addl Info form in TurboTax Business. The entry would be made under "Code I, L to R, and ZZ: Other Income" on Line 2 Other *. Your entry here will be included with the partner K-1 as Supplemental Information.

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