I am a W-2 guy, wife has business K1, problems plugging number in TT premier

Forum|Forum|3 years ago
April 10, 2023
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Hello:

I bought TT premier -I buy TT every year- and had my taxes done in 30 mins. My wife and a partner have an LLC. I'm NOT involved in any way. She uses a CPA for that and I have the 1120-S and her K-1 Schedule [ordinary business income]. Problem is, when Turbo Tax asks me about income and if me or her have a business and I say yes, it starts asking all kind of business related questions that I'm not privy [and answers to those questions are not included in her 1120-S tax return]. Spend over 2 hours and I'm still not done doing that portion of the income Tax return! Called her CPA and wanted $300 to do this for us. [Since she already did the LLC taxes she charging for My Taxes, which I did in 30 mins!]

Questions:

A-Since she already filed and paid for her taxes for her business, how can I ONLY include her K-1 [ordinary business income, her portion] in our taxes with out having to go through he whole process [it feels like I'm doing her 1120S gain now on TT].

I Know I have to include her K-1 ordinary income on our taxes but I should be able to plug one number -the money she made-not do the whole 1020-S that the CPA already did.

Thanks in advance for any help

Best answer by AliciaP1

You may have begun entering the information in the wrong place or "told" TurboTax someone was self-employed so it is expecting a Schedule C. You need to delete the information input and then re-enter the Schedule K-1.

To do this in TurboTax Premier Desktop you can follow these steps:

Within your return, click on the Forms icon in the upper right of the screen to switch to Forms mode
Scroll down in the menu bar on the left and select your form
Click the Delete Form button at the bottom left of the preview screen
Confirm the deletion then click the Step-by-Step icon in the upper right of the screen
Using the search bar, type K-1 and select the Jump to link in the search results
This will take you to the Schedule K-1 and Schedule Q screen
- Note: If the Jump to link doesn’t work, select Personal, then Personal Income
Select I’ll choose what I work on and continue until you reach the screen, Your 2022 Income Summary
Select Start next to Schedule K-1 under Business Investment and Estate/Trust Income
Answer Yes and follow the prompts
We’ll ask some questions about your K-1, and then you’ll enter the data from the form

@DamMint

JohnB5677

You will have to post the entire K-1, but there is a different filing requirement and processing technique between the prep for the 1120-S and the K-1. The 1120-S is an actual tax return with a specific filing date. The K-1 is only a summary of your wife's portion of the business, and it has to be included in her tax return.

Taxes are not paid by the 1120-S tax return, rather they flow through to the individual, and the individual pays the taxes.

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DamMintAuthor

Apparently her business pays taxes every 3 months, K-1 is what she made for the year.

I just want to plug that in TT, its just one number. Why is TT asking all this information [e.g. do you have inventory, what is the cost of the gods etc] which was al resolved and submitted in the 1120S. She only needs to pay taxes on the number that comes out of the K1.

How do I plug in the K1 number in TT ?

TIA

AliciaP1Answer

To do this in TurboTax Premier Desktop you can follow these steps:

Within your return, click on the Forms icon in the upper right of the screen to switch to Forms mode
Scroll down in the menu bar on the left and select your form
Click the Delete Form button at the bottom left of the preview screen
Confirm the deletion then click the Step-by-Step icon in the upper right of the screen
Using the search bar, type K-1 and select the Jump to link in the search results
This will take you to the Schedule K-1 and Schedule Q screen
- Note: If the Jump to link doesn’t work, select Personal, then Personal Income
Select I’ll choose what I work on and continue until you reach the screen, Your 2022 Income Summary
Select Start next to Schedule K-1 under Business Investment and Estate/Trust Income
Answer Yes and follow the prompts
We’ll ask some questions about your K-1, and then you’ll enter the data from the form