How do I account for book/tax difference from imported Quickbooks data caused by nondeductible meals?

[jon5]

I've imported data from Quickbooks to TurboTax and categorized everything but I'm left with a ~$4000 difference between "Reporting income for tax purposes" and my "Book Income"

This difference is entirely from "Nondeductible Meals & Entertainment" but I'm not sure what do to about it. The accounts are appropriately categorized in Quickbooks as 50% deductible, and entered that way in TurboTax.

Am I missing something?

[MinhT · Accepted solution]

The non-deductible portion of Meals & Entertainment is reported on line 4 of Schedule M-1 - Expenses recorded in books this year not included on Schedule K.

[jon5]

Thanks for the info - so what do I need to to do make my Income Reconciliation show "in balance" in TurboTax?

[MinhT]

You can enter the amount on Schedule M-1 using the Forms mode.

[jon5]

Thanks again for helping out here! Not sure if I'm being really dense but it looks like TurboTax did create and fill out the the Schedule M-1, but it still says my Income Reconciliation is not in balance on the first page of the "Balance Sheet" step

[jon5]

A-ha - I found it. Whole-dollar rounding appears to have caused the non-deductible difference to be $4006 but the M-1 ended up with $4005. I've added a $1 line item for rounding and everything balances. Thanks again!

[MinhT]

You're welcome!