Form 7203

[Dkranz007]

My wife paid an accounting firm to do her business taxes. I received a K-1form from them. In turbotax, on Form 7203, the software will not let me enter data provided by the accounting firm.  

[MonikaK1]

Form 7203 is used to calculate any limits on the deductions you can take for your share of an S corporation's deductions, credits, and other items. For example, your deductible loss generally can’t be greater than the cost of your investment (stock and loans) in the S-Corp.

You must complete and file Form 7203 if you’re an S corporation shareholder and you:

• are deducting an S-Corp loss (including a prior year loss disallowed due to basis limitations)
• received a non-dividend distribution from an S-Corp
• disposed of S-Corp stock (regardless of whether a gain was recognized)
• received a loan repayment from an S-Corp

If any of these situations apply to you, TurboTax will create Form 7203 on your personal return and perform limited calculations based on your entries in the Schedule K-1 section. 

Refer to the IRS instructions for help in completing this form.

See this help article for information on Form 7203.

See this help article for entry instructions for Schedule K-1 information for TurboTax Online and TurboTax Desktop.

[Dkranz007]

Turbotax does not allow me to finish filling out the form. Specifically line 11. according to the accountant's form, line 11 has 3273, line 14 is 3273 and line 15 is zero, but I cannot enter those figures.

[RobertB4444]

When you enter the information from your K1 into your tax return then the system will generate and fill out form 7203 for you.  You should check your entries for the K1 if that isn't happening the way that you want.

@Dkranz007 

[hbowak]

Simple K-1 from Sub-S has only on entry of (830) on line 1.  Form 7203 auto-populated with that.  Turbotax Smart Check says "Form 7203:  Line 3a cannot have a gain in Part I and a loss in Part III."  Part I does not have a gain, it has a loss in basis of $830 on line 15, from $9,618 to $8,788 (also populated from K-1 automatically.)   Lines 35 and 47 both show $830 as positive numbers in columns (a) and (c) - also auto-populated from K-1.

I own the Sub-S wholly and filed the 1120-S with this K-1 several weeks ago.  Can you help?  Thank you.

[AliciaP1]

I can't recreate your issue.  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

@hbowak 

[hbowak]

Token 1080375

Thank you.

[AliciaP1]

You entered a 0 on line 3a so the software is reading it as income.  To remove this in TurboTax you need to process the Federal Review again to pull up the Form 7203 error and delete the 0 entered on line 3a of Part I.

@hbowak 

[hbowak]

Thanks, that worked.  But I did not enter the 0, TurboTax did.

[wMoses]

Hi- I am needing to file a K-1 schedule (1120 S) can I do it online with Turbo Tax? Thank you! 

[DoninGA]

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@wMoses  wrote:

Hi- I am needing to file a K-1 schedule (1120 S) can I do it online with Turbo Tax? Thank you! 

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If you received a Schedule K-1 from the S Corporation you can enter the K-1 using the TurboTax online editions of Premier or higher.

To enter a Schedule K-1 -

Click on Federal
Click on Wages & Income
Scroll down to S-corps, Partnerships, and Trusts
On Schedule K-1, Q, click on the start or revisit button

Or enter k-1 in the Search box located in the upper right of the program screen. Click on Jump to k-1

[wMoses]

It is telling me I have to download Turbo Tax business? 

[DoninGA]

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@wMoses  wrote:

It is telling me I have to download Turbo Tax business? 

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If you need to create a Schedule K-1 for the S Corp then the only way to do that using TurboTax is to complete a S Corp tax return, Form 1120S, using the TurboTax Business Edition.

The Business Edition can only be installed on a Windows based personal computer, not on a Mac or online.

Go to this TurboTax website for the 2022 Business Edition - https://turbotax.intuit.com/small-business-taxes/