Question

For K1 partnership box 1 and box 14 code A shows same amount and Deluxe is asking for both and resulting in double taxing for the same income. Why?

Forum|Forum|7 years ago
June 6, 2019
4 replies
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I

Irene2805

Are you using the online version of TurboTax or the CD/Download version?

M

mesh2112Author

I am using Deluxe ... from CD, I purchased.

I

Irene2805

You are not being doubly taxed on that income. It is correct to have the same amount in box 1 and box 14A.

Box 14A just identifies the income in Box 1 that is considered self-employment income. You will see that the income from box 1 is only reported once on Schedule E, p. 2. line 28K.

M

mesh2112Author

Does it mean for Schedule K1 Partnership case I need to use the amount in Box 14 Code A only?

F

Fischmic1

I am having the same issue. I think box 1 and 14a in TurboTax are not working correctly. Entirely way too much coming out . 14a should be informational only, should only see the refund amount lessen with entry into 1 or the other. After entering ordinary income of 100k in box , I lose over 20-23kin refund from line 1. That is correct, however this should not happen a second time with box 14 a. If I enter the 100k again in box 14a (same amount that is already in box 1) it takes another 15k. So in total would be losing 23k from box1 and15k from box 14a, which is 38k on 100k ordinary. That is a tax rate of 38% this can not be correct. I would love to have this resolved for sure as this is very confusing.

what tax would you safely expect on 100k ordinary business income line 1 of a K1. I am def not in a 38% tax bracket.

C

confused123

the only answer i have TT is software from hell. there is no way to enter required information from K-1 without getting double taxation. they must do it on purpose

Critter

Employee

@confused123 @Fischmic1

You must be new to a partnership K-1 ... so LOOK at the actual form 1040 to see what is happening... you are NOT being double taxed ... when you entered the box 1 income the FEDERAL income tax was computed ... then when you entered 14a the SE taxes were computed. On 100K of income 38% would be about right if you add the fed & se taxes together.

You can peek at only the Federal form 1040 and the summary of the state info by going here:

1) lower- Left side of the screen...click to the left side of the "Tax Tools" text selection.
2) then select "Tools"
3) then select "View Tax Summary" from the pop-up
4) then back to the left-side and "Preview 1040"

Then hit the "Back" on the left side to get back to your tax entries.

To view your entire return using the online editions (including the state) before you file, you will need to pay for your online account.