Schedule K-1 Box 20 Codes AJ and ZZ auto-generate a Form 3468 Investment Credit - ERROR!

[figgy008]

Hello, I believe the Schedule K-1 Box 20 Codes AJ and ZZ are auto-generating a Form 3468 Investment Credit (as if Codes D, E, F, G, or H were selected in Box 20). Codes AJ and ZZ are on my K-1; when I enter all the information appropriately into the Turbo tax software, the review tells me I have to fix items on a Form 3468 which does not apply to our partnership. Please fix this bug so that we may proceed with filing our taxes appropriately with the K-1. 

[edschonack]

I'm having the same error, even after doing the updates I've been waiting for Intuit to get from the IRS.

[PatriciaV]

The incorrect identification of Code AG/AJ will be addressed in a forthcoming update. We recommend signing up to be notified when the update is released: Why am I receiving an error in TurboTax for Schedule K-1 Box 20 when code AJ is selected?

However, since this information will be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return), you have the option to omit the code and the amount(s) from Schedule K-1.

@figgy008 

@edschonack 

[figgy008]

Thank you, @PatriciaV ! However, even if I leave off Code AJ in Box 20, I still get the same error mentioned above with just Code ZZ in Box 20. :( should I omit both the AJ and ZZ codes?? When I do that, the K-1 is good to go (I.e. passes reviews successfully). Thank you for any insight you can provide. 

@edschonack 

[PatriciaV]

Yes, if you are omitting the information from Box 20, do not enter the codes with blank boxes.

@figgy008 

@edschonack 

[jketterl]

I have the same errors.

[jbaker5280]

The workaround, deleting the AJ code and associated values, worked.  But to make it work I had to delete my return and start over again as I could not purge the Investment Credit form from the return.  Thanks for the counsel on work around, it will allow me to file electronically.  

[PatriciaV]

If you are using TurboTax for Desktop and can use Forms Mode:

Check K-1 Partner for this entity. Make sure there are no entries for Form 3468 under Part III Credits.

Open Form 3468. Delete anything in the Description box. Review the entire form to be sure there are no other entries. Then delete Form 3468 if it is still on the forms list (usually this removes the form automatically).

@figgy008 

@jketterl 

@jbaker5280 

[jabbadehut]

Hi, it appears to have been 11 days since your post about the update to fix the issue so many are having with the Schedule K-1 Box 20 entries "ZZ-Other" generating a bogus Form 3468 which cannot be worked around without cutting corners.

Any update on when this fix is going to be released?  Thanks.

[PatriciaV]

Have you tried deleting the K-1 and re-entering the information again? A recent update should have resolved this issue, but it may not apply to an existing K-1.

After you delete the K-1 and before you re-enter, check to see if Form 3468 remains in your return. If so, delete that form as well.

Additional Information:

• How do I view and delete forms in TurboTax Online?
• How do I delete a tax form in the TurboTax CD/Download software?

@jabbadehut 

[jketterl]

I ended up starting a new tax file in TurboTax and did not enter any AG or ZZ information into the K-1 section because I could not delete the Schedule K-1 information already inputted into the program.  That seemed to clear up the issue.  

[sk48]

unable to file tax with same error message.  already deleted and re-entered all the K1 information.  same error message appears. cannot file tax.  in addition, second error message under individual 401k - insisting 6a (elective deferrals made to an individual 401k for 2023.  i contributed through sch K1 only, so I have no additional individual 401K.  I only have single 401k account.  This error also prevents e-file.  Please help

[SK123123]

@PatriciaV  - When is this getting fixed ? I got the same error and my Intuit Tax Reviewer highlighted that this issue fix is in the works. So please advise an ETA. Thanks

[PatriciaV]

We are expecting an update for Box 20 to be released on March 29, 2024. Because updates are released after business hours Pacific time, we recommend waiting until the day after, then updating TurboTax (if using Desktop), and run Review again.