Form 7203

[drp10]

Hi all,

I have used TurboTax for years, but this year I'm getting a new form 7203, which is confusing, especially based on its description.

Basically, I am self-employed, receive a W-2 and my LLC is filing as S-Corp so I receive a K-1.

However, this year TurboTax is asking me to fill in this 7203.  Looking at https://www.irs.gov/instructions/i7203 in the "Who Must File" section, I don't fall under any of those categories.  So why is TurboTax asking me to fill this in?

[AliciaP1]

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on the top of your screen and select Online. 

1. Scroll down to and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 

Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.   

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@drp10 

[drp10]

Thanks Alicia, the token number is 1133556.

[AliciaP1]

Upon review, box 16 is completed on your K-1 for Property Distributions which is a non-dividend distribution and you are required to complete Form 7203 when you receive non-dividend distributions.

@drp10 

[drp10]

So this is new as of 2022 then?  Because I've never had to do it before and I've done this since 2008.

[JulieS]

Yes, Form 7203 was introduced in 2021 and it replaces the basis worksheet for pass through entities.