K1 issues for year 2022 Tax retrun.

[Rick19744]

Responses:

• If you can eliminate the worksheet for at-risk, do so.
• I'm confused.  Have you already filed the 2022 tax return?
  • Were you making changes to an already filed 2022 tax return?
• Then in rereading the string, you indicate you are trying to "amend" 2022?
• Just not clear on why we are talking about 2022 and 2023 in the same string.

[sam992116]

@Rick19744 

I had already filed 2022 return on time last year.

I was preparing my 2023 (there were PTP sales) and that when I realized numbers don't match.

In order to properly file 2023 return

Should I Amend and file 2022 return

or Can I just update 2022 return and upload this file into my 2023 for last year data (This updating of At risk forms is NOT changing my tax amount). This way I will have correct number for carry over losses?

Can one file Amended Return Online? In past I have filed Amended return online for most current year. For Example if I have already filed 2023 return and now want to amend 2023

[Rick19744]

If the change in the 2022 return only had to do with PTYP losses that were disallowed, and no change to taxable income, I would not amend the return.  If you are ever questioned, this can easily be addressed with the IRS.

Since you have already "rolled over" 2022 into 2023, you can't do this a second time.

[sam992116]

@Rick19744 

Thanks for your input and I really appreciate you time and effort. Could you please elaborate your last sentence.

"Since you have already "rolled over" 2022 into 2023, you can't do this a second time."

For 2023 return which I have NOT filed yet.

When you start a return mostly one would import data from previous years esp. if you have K1s like that. I did import orginal 2022 return where later on I found errors.

So are you saying first Amend my 2022 return as to update my records and don't file as no tax dues.

Then I have to start a new 2023 return with amended 2022 return to import data?

[VolvoGirl]

I think yes.  You can only transfer from 2022 into a new return.  So if you amend 2022 you would have to start a new 2023 return to transfer from the new amended 2022 return.  Are you using the Desktop program?  

[sam992116]

@VolvoGirl 

Yes, Desktop, Can you even imagine filling out K1 and finding out errors with Online version.

[Rick19744]

Two things:

1. First, I would not amend your tax return if it does not impact taxable income for 2022.  By this, I mean do not amend with TT and send it in to the IRS.  Amending a return that does not change the bottom line will most likely cause confusion within the IRS; and begin a back and forth letter writing campaign.
2. As @VolvoGirl noted, you can only import into a 2023 return once.  You have already done that.  It doesn't matter if you filed the return or not, you have "rolled over" all the 2022 information.

If you have a copy of the originally filed 2022 return (paper or pdf), and you want to change your 2022 return within TT, in order to get that changed information into the 2023 return you would need to start from scratch; once again as noted by VG.

[sam992116]

@Rick19744  @VolvoGirl 

Thanks

Sorry keep asking for same question.  What from Scratch means?

1. Choice

Make Changes to my 2022 return and save this copy for my tax record and don't file as amended return as tax is not changing.

Now I have to open a brand new 2023 tax return and get 2022 data from this updated 2022 tax return?

or 2 Choice

From the Scratch mean

First prepare a brand new 2022 tax return with updated data (no need to file as it is not changing bottom line and 2022 has already been filed)

and then import this file to start a 2023 tax return?

[VolvoGirl]

Scratch just means starting 2023 over from the beginning again after you transfer from 2022.  Both choices are yes.  Do choice 1.  

[sam992116]

@VolvoGirl 

Thanks I don't any energy to prepare a brand new 2022 return from scratch. Will prepare 2023 though from scratch.

[sam992116]

@VolvoGirl  @Rick19744  @Mike9241 

Thank you guys for you help and input.

I have a question how make changes in 2022 return. It is for my records as Tax is not changing and I need this for a fresh 2023 return.

Option 1.

Open 2022 return and save as a new name return.

and make changes within Form Mode as it will remove duplicate Carry Over Losses.

Tax is Not changing.

Lets say I was expecting a $1000 refund and it is still showing $1000 refund in Top middle box. By the way I have already gotten my refund last year.

Options 2

Open 2022 return and save as Amend 2022

Then go to other Tax situations

Amend return (as soon as I click on this button refund on Top middle goes to ZERO)

I will choose what I work on

Then Make Changes within Form mode as it will remove duplicate losses.

But by this method, as soon as I click on Amend return within Other Tax situations. Refund goes to ZERO at top. Then I have to do Federal Review (no error messages) and type a reason for Amend. Tax is Not changing. But Top Middle Box is still showing ZERO.

I know it is technical thing I don't to mess this up for next year return.

Any Pros and Cons of each method.

[Mike9241]

I would use option one since you have forms mode availability. 

[sam992116]

@Mike9241 @Rick19744 @VolvoGirl 

Thanks guys: It was really helpful. Now I am doing finishing touches to 2023. So far it went very smoothly.

Q: How information is flowed from K1 to 1040 (I am talking about K1 entities which I have sold)? Now I have sold some of these, I want to see how it went? I went backward. It is is on 1040 (line 8 and it came from Sch 1 (line 10) and not sure before that?

Q: Form 4797 deals with Sale of business either by me or K1 entity I owned. What is difference between Sch D and 8949 as both deals with same thing? Where information goes first 8949 then to Sch D?

Thanks

[Rick19744 · Accepted solution]

@sam992116 your questions are getting beyond the realm of what a forum such as this is able to help with since we cannot see your return.

From my perspective, you need to get assistance from TT who can review your actual return, screen etc. 

I recommend you take advantage of one of the live TT assistance options in the link below.

https://turbotax.intuit.com/personal-taxes/online/live/

[sam992116]

@Rick19744 

Thank you for your patience in answering my questions. I was just curious how information flows.

Any I have figured it out. Stock Sales goes first to Form 8949, and 1256 Contract goes to Form 6781 then they both go to Sch D.

Partnership Sales goes to 4797 and partners income/losses over goes to Sch E and then they both go to Sch 1 for net effect.

From there both Sch 1 and Sch D goes to 1040

Anyway thanks again for your time and help.