K-1 Box 14

Forum|Forum|2 years ago
August 8, 2023
1 reply
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I am from Indiana and own an LLC. On my k-1 I have both code A and code C. Which one do I use? per the IRS website if your an individual partner you should use code C. IRS information below.

Code C. Gross nonfarm income.

If you are an individual partner, use this amount to figure net earnings from self-employment under the nonfarm optional method on Schedule SE (Form 1040), Part II.

Do the IRS rules regarding the non farm method apply to the statement above? Just a tad confused!

Thank you!

TurboTax Self Employed Online

Mike9241

Level 15

fill in both boxes

code A is for the regular method and code C is for the non-farm optional method. Turbotax will optimize.

most don't qualify for the NFO

Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits were less than $6,540 and also less than 72.189% of your gross nonfarm income, and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times.

Mike9241

rmrussell8607Author

Level 2

If I do both , it automatically takes the standard. If I leave out A , it asks me to do the non farm option and saves me more money. But , since the IRS instructions say to use the non farm option method as an individual partner , I wasn’t sure if the rules from the non farm optional method still apply.