Turbotax gives error for K1 NO ENTRY EXIST

[sapraj85]

I entered K1 and also onlt box 13 has amount with code AE.

It is investment club K1 so entered as other.

Turbox tax gives error for K1 entry is not made.

[PatriciaV]

Please clarify where you are entering the K-1 information - personal or business return. What did you enter as "other"? When does the error message appear?

[sapraj85]

Personal Return using Turbotax premier.

Since I do not have amount in box 1 to 3 and this is from investment club choose others.

Entered open balance 1000 current year net income -10 and ending capital account 990.

Entered Box 13 amount Code AE and Amount -10 due to loss. 

It checks entry and gives message 'We noticed you have a K-1 that has no entries. We need to ask you few more question to get right on on your return'. Again it goes thru same screen. It does not recognize $10 loss entered for box 13. I do not have amount in any other box. Thanks for your help.

[PatriciaV]

Did you work through the entire interview to enter the partnership information and tax id number? 

Choosing "Other" for type of activity is correct. You should be able to complete Schedule K-1 with no income and only a portfolio deduction from Box 13 Code AE. But the K-1 information must be complete.

[sapraj85]

I did complete K-1 information including tax id number etc. many time.

Also box 16 is marked for K3. I entered K3 information also. 

I even tried without marking K3 and still does not recognized.

Somehow it does not recognized that I entered box 13 information.

[PatriciaV]

It would be helpful to have a TurboTax ".tax2023" file to test this issue.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose File >> Share) 

1. Choose Send Tax File to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear. 
3. Reply to this thread with your Token number and tag (@) the Expert requesting the token from you. Please include any States that are part of your return. 

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

@sapraj85 

[texasuser]

I also have similar issue. have made entries but it still keeps saying that.

[annabelleagain]

1224985
@PatriciaV  @theexpert

I'm having the same issue when TurboTax invited me to add information for Box 13 as AE, and then the amount is being entered on Schedule A as "Other taxes". thank you.

[PatriciaV]

Form 1065 Schedule K-1 Box 13 Code AE reports portfolio deductions, which were formerly deductible by individuals under section 67 subject to the 2% AGI floor. The partnership reports these deductions for partners who are not individuals, as they may be able to report the deductions.

In the case of a taxpayer filing Form 1040, the deduction is no longer allowed. 

You have two choices:

1. Return to the Schedule K-1 topic and delete the amount and the AE code for Box 13.
2. Return to the Schedule K-1 topic and delete the amount for Code AE.
   Run SmartCheck again. When prompted, enter the amount on Line 2 Other miscellaneous itemized deductions.

@sapraj85 

@texasuser 

@annabelleagain 

[DeeJayKay]

However it is allowed on some state returns so this fix is not correct if you are in one of those states.

[PatriciaV]

You have the option under the State taxes topic to adjust the income/deductions reported from the federal Schedule K-1. If Box 13 Code AE is reportable to your state, make the necessary adjustment to claim the deduction.

@DeeJayKay