Schedule K-1 Error

[DaveBair]

Check This Entry

Sch K-1 Wks-Partnerships (???) -- Sch K-1 Partnership Additional Info 1: Other information fields have no entry. A total of -727. has been entered for code(s) AH to ZZ. Code(s) AH to ZZ require(s) additional information. Please enter -727. on the appropriate line or lines in this section.

Basis of gasification

I am getting this error when I enter the information for my K-1 and go to Review.  I have an AJ code entered in Box 20 of my K-1, so I entered the relevant 199-A information.  That shows up in the "other information" box on the form, but this error keeps coming up.

Spent an hour on the phone with support with no resolution.

[DaveBair]

This relates to Form 1065.   I have information in box 20 (Z, AJ).

I have deleted the K-1 completely and added back in to see if recent software updates might have fixed this.

[DaveBair]

@PatriciaV Do you have any insight on this issue?  I noticed you had posted on several other K-1 related problems!

[arnoldh3151]

I have the same issue.  Their support person worked on it for 1/2 hour before she got a supervisor on the line.  The supervisor informed me that it was a known bug and they were working to correct it.  It was supposed to be corrected by last Friday, but it wasn't.   I keep email updates that they are still working on it.

I can't get an answer to whether the bug affects what I owe; I'm inclined to think not, but I don't want to make a mistake.

[PatriciaV · Accepted solution]

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 before you re-enter the K-1 as follows:

If you follow the steps below, the information from Schedule K-1 Box 20 Code AJ will appear on an Additional Information worksheet as part of your return. How you use this information is left for you to determine and enter as appropriate. Note that Code AJ is for Excess Business Losses, which would be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return). If this doesn't apply to your tax situation, you may completely omit the following entries.

1. Working through the Schedule K-1 entry screens, check the box for Box 20.
2. Continue to the page to Enter Box 20 Info.
3. Choose AJ - Excess business loss limitation from the drop down.
4. Do not enter an amount here.
5. Continue to the page to Enter Box 20 Other Information Amounts.
6. In the section under "Other Description", enter the Supplemental Information provided with your K-1. Choose relevant descriptions then enter the amount for each line.
7. Continue to back to the K-1 Summary page.
8. Run SmartCheck again.

You can review the result using Forms Mode in TurboTax for Desktop.

1. Find K-1 Partner [name of K-1] in the forms list on the left.
2. Click on K1P Addl Info 1 under that form to open it in the large window,
3. Scroll to the bottom of the form to Code AH to ZZ: Other Information.
4. Confirm that your entries for Box 20 Code AJ appear on Line 6.
5. Click Step-by-Step to return to the main screens.

@DaveBair

@arnoldh3151

[DaveBair]

Thanks for the note Patricia!   I have deleted and re-created my K-1 and there was no change.  I do not have the Desktop version of TurboTax, only the online version.

I consider this issue still open, not resolved yet.

[arnoldh3151 · Accepted solution]

Following your instructions solved the problem.  As mentioned, I deleted the K1 on forms and started over following your detailed instructions.

The Federal and state calculations didn't change, but I'm no longer getting the error.

Thanks for the fix, I hope it helps others.

FYI, I'm using Home and Business for Macintosh3.

[DaveBair]

I was able to get this to work today.   I took @PatriciaV 's advice.  Once I deleted the K-1 and started over, I also had to eliminate the AJ code (since it wouldn't affect my return).  With that, the return was acceptable.

[TerribleTax]

I continue to have the error (as of Mar 31, 2024), and tried deleting and re-entering the Schedule K-1, but the error persists.    I have the Windows Desktop version of Turbotax Business.

I have two Schedule K-1's, one with code AE in Box 20, the other with code AG.  Both Schedule K-1's create the Turbotax error mentioned by the OP.  Do I have to eliminate these entries in Turbotax to get this program to work properly?

[PatriciaV]

Are you seeing an error regarding "gasification" or is the program asking for "additional information" for these codes from Schedule K-1?

For the "gasification" message, delete Form 3468 after you delete the K-1 with Code AG and before you re-enter the K-1. You can do this using Forms Mode.

If you're asked for additional information, you may need to report the amounts from Codes AE and AG on a different form. If you do so or are not required to file the info from either code, remove the code (and amount) from your K-1 entries.

From the IRS Instructions for Form 1065 Schedule K-1 Box 20 Code AE: "Report the amount of excess taxable income on Form 8990, Schedule A, line 43, column (f), if you're required to file Form 8990. See the Instructions for Form 8990 for additional information."

See the IRS Instructions for Form 1065 Schedule K-1 Box 20 Code AG on how to use the information provided by the partnership.

[TerribleTax]

Hello, the error I am getting is:

"Check This Entry.  Sch K-1 Wks-Patnerships (XXX) -- Sch K-1 Partnership Additional Info 1: Other deduction fields have no entry.  A total of 5595. has been entered for code(s) W to ZZ.  Code(s) W to ZZ require(s) additional information.  Please enter 5595. on the appropriate line or lines in this section."

I don't see anything regarding "gasification".  And I don't know if codes AE and AG qualify as lying in the range "W to ZZ" as described above.

Thanks.

[PatriciaV]

Yes, codes AE and AG are included in the entry range of W to ZZ on the Additional Information worksheet. If you have entered an amount for either or both of these codes, you also need to enter an equal amount on the Additional Information worksheet. If Code AG does not apply to you, leave the amount blank and remove code AG from box 20.

@TerribleTax