TurboTax is deducting my self employment income with prior Passive Losses which I don't think is correct.

[elkinm]

I have self employment income as well a Passive Loss carryover from a K-1.

TurboTax is deducting the self employment income with some of the losses of the K-1.

Self employment income is NOT passive income so the Passive Loss should not be used. How can I get this corrected?

I can remove the Passive Loss entirely, but could it be an issue if the Passive Losses are not reported with my taxes?

[elkinm]

I think I finally found it, under self-employment Business Summary, under Other Situations it asks Actively participated in this work which was set to no. I don't think I ever looked at or checked that box. Now that it is checked, it no longer tried to use it with my K-1.

I still don't know why it would select this option and I would not select it unless I misunderstood what it was asking. 

[ThomasM125]

I set up a business in TurboTax and noticed the default answer to the "Actively Participates" option is "yes" so I don't know how that answer would get changed. If you didn't actively participate it would be considered a passive activity so that is why passive loss carryovers from the previous year might be applied to income from the business.