I haven't previously marked anything in the software "pass through entity". I'm not sure how I know what a "pass through entity" is. I have a guess. I have two 1099-MISC involving royalties from Oklahoma oil and gas production, one of which is LLC and one LP. Even if I've guessed which data entries triggered the "update" flag I still don't know what to do next...
An LLC or LP is a pass through entity. The income or loss from these investments are "passed through" to the owner of the investment.
Since you are getting a prompt to update those entries, you need to go through the K-1 entries for them to see what information is being requested by TurboTax.
So, I entered "K-1" into "help" and it provided me with a link to that form which I'd never found otherwise. There, I was asked if I'd received a "K-1" or "Q" and I indicated "no" and things continued. There was nothing about "pass through", no way for me to know definitively that the "pass through" thing was addressed.
Having gone through that if you tell me I'm good-to-go I guess I am. It seems like, though, that there is a need for some revision in the software that eliminates the confusion.
I just saw your post, as I was off for a couple of days. You may have entered a K-1 schedule in a prior year and it may have been carried over to the current year. Sometimes you have losses reported on an ownership in a partnership and they are not deductible in the current year but are carried over to future years.
You can look to see if you have any K-1 schedules in your tax file as follows:
1. Find the Tax Tools option on your left menu bar and click on it
2. Click on Tools
3. Find Delete a Form and click on it
4. Look for a form that starts with "K-1" in the list of forms and click on the option to delete it if you are sure it doesn't pertain to the current year
Otherwise, if you are not getting error messages when your run the review routine in TurboTax, your return is ready to be filed.