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Fou65000
Level 3

How to enter box 20AE "Excess Taxable Income" from K-1 1065 forms in TurboTax so it generates a Form 8990?

Hello,

In the Turbotax interview for Schedules K-1 1065, on the page "Enter Box 20 Info", I have entered the amounts for Box 20AE - Excess Taxable income for 3 different MLPs in which I have invested in 2020 (and disposed of also in 2020).

The amounts for Box 20AE I have on my K-1s are pretty small for each MLP:

MLP#1:     4$
MLP#2:     17$

MLP#3:      4$

 

However, in my final tax return, I don't see where these numbers are used by TurboTax. I thought that Excess Taxable income  was reported on Form 8090 but TT did not generate such a form. Is this normal?

Do I need to pay taxes on Excess Taxable income and should it be reported somewhere in my final TT tax return?

Thank you for your help!

4 Replies
nexchap
Level 7

How to enter box 20AE "Excess Taxable Income" from K-1 1065 forms in TurboTax so it generates a Form 8990?

Unfortunately, TT doesn't support form 8990.  You can download it from the IRS website, fill it out, and then add it to your return (which you'd have to print and file by mail).

 

If all you have is 20AE "Excess Taxable Income", you shouldn't need to file it.  But when you get an entry for "Excess Business Interest Expense" (box 13, code K), you'll need to.  Here's the "Who Must File" section from the form:

A taxpayer with business interest
expense; a disallowed business interest
expense carryforward; or current year or
prior year excess business interest
expense generally must file Form 8990,
unless an exclusion from filing applies.
     A pass-through entity allocating excess
taxable income or excess business
interest income to its owners (that is, a
pass-through entity that is not a small
business taxpayer) must file Form 8990,
regardless of whether it has any interest
expense.
     A taxpayer who is a U.S. shareholder of
an applicable controlled foreign
corporation (CFC) and such CFC has
business interest expense, a disallowed
business interest expense carryforward; or
is part of a CFC group election must
generally apply section 163(j) to each
CFC and attach a Form 8990 with each
Form 5471. See Proposed Regulations
section 1.163(j)-7(b).

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer. seasoned, TurboTax user. Use any advice accordingly!
Fou65000
Level 3

How to enter box 20AE "Excess Taxable Income" from K-1 1065 forms in TurboTax so it generates a Form 8990?

Thanks a lot!

I am far to understand what it is but since I have no entry for "Excess Business Interest Expense" (box 13, code K) or they are equal to 0, I guess I don't have to worry about these Excess Taxable Income values.

Should I keep them in the Turbotax K-1 interview for box 20?

nexchap
Level 7

How to enter box 20AE "Excess Taxable Income" from K-1 1065 forms in TurboTax so it generates a Form 8990?

@Fou65000 Entering 20AE into TT won't affect your taxes.  Its purely for your record keeping.

**Say "Thanks" by clicking the thumb icon in a post
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer. seasoned, TurboTax user. Use any advice accordingly!
Fou65000
Level 3

How to enter box 20AE "Excess Taxable Income" from K-1 1065 forms in TurboTax so it generates a Form 8990?

Got it!

Thank you.

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