Returns and Allowances on 1120s Has An Issue

[bfalter]

I imported my tax info from Quickbooks into TurboTax Business.  QB imports Returns and Allowances as a negative number.  TurboTax Business states the value cannot be negative and I must change it to a positive value to proceed.  TurboTax Business adds the positive value to my sales.  To make the numbers correct I entered an offsetting adjustment (2X the return amount) under COGS.  Is a fix forthcoming?

[AliciaP1]

If the amount is imported to a line within "Receipts" as a negative number, you need to remove the line item information and instead enter the number as "Customer Returns" as a positive number.  To do this you can follow these steps:

1. Within your tax return, under the Federal Taxes tab click Income.
2. Click Update under Receipts
3. Delete the entries for Enter your own receipts or sales activities
4. Click Continue
5. Click Start on the line for Customer returns
6. Enter your "Returns and Allowances" amount as a positive number

[bfalter]

It is not listed under Enter Service Receipts and is entered as a positive number under Customer Returns.  TurboTax Business is adding the values.  This is a Turbotax issue.

[AliciaP1]

Your initial post stated that it imported as "a negative number" but now you say it is a positive number.

Switch to forms mode and verify the calculation of lines 1a, 1b, and 1c.  To do this please use the Form icon in the upper right of your screen.  Choose "Form 1120S p1-2" on the left side of the screen and scroll down on the preview screen to line 1.  TurboTax subtracts line 1b from 1a to get line 1c.

@bfalter

[bfalter]

TurboTax made me change it to a positive value during the Federal Review.  Line 1C does not update even though it is a positive value.  Even though I changed it to a positive value it is like TT is still using the negative value from Quickbooks.  In the 1120s pg1-2 it shows as a positive value but line 1c value is line 1a+1b or 1a minus the negative 1b value.

[AliciaP1]

It would be helpful to have a TurboTax ".tax2021" 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: 

At the top menu in the black line at the top of the page go to Online. 

1. From the menu, select Send Tax File to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click Send and then you will get a Token number. 
3. 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.

@bfalter

[bfalter]

The token is 948823

[bfalter]

Is a resolution expected before March 15 filing deadline?  Thanks.

[AliciaP1]

You need to overwrite the "Balance" on line 1c with the correct calculation then check Your Reconciliations and Balance Sheet screen to ensure everything is in balance.

To do this please follow these steps:

1. Within your tax return switch to Forms mode by clicking the Forms icon at the top right of your screen
2. Click Form 1120S p1-2 from the left-hand menu
3. Scroll down to line 1c and enter the correct amount of Gross receipts or sales (line 1a) minus Returns and allowances (line 1b)
4. Switch back to Step-By-Step mode with the icon in the upper right
5. Under the Federal Taxes tab click Balance Sheet
6. If any reconciliation is not "In balance" use the edit button to go through and make adjustments as necessary

@bfalter