Line 14 C on K1 Form question

Forum|Forum|5 years ago
April 9, 2021
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My husband is a general partner for a small LLC business. The business paid out distributions to all of the partners dependent on their percentage of ownership which produces the K1 form. We use Turbotax for both the business and personal. On my husband's personal K1 form produced by the Turbotax software, there is an amount in 14A and an amount in 14C. I don't believe we need to include 14C for our personal taxes, but I am not sure. 14A seems to show the amount distributed to him after deductions which makes sense that he would pay taxes on, but 14C appears to be calculating the business amount. Do we need to include 14C on our personal taxes? When we input 14C on the turbotax program it seems to double the amount of taxes which doesn't seem correct. Can you please help? Thanks much!

TurboTax Home & Biz Windows

Irene2805

Enter both amounts. The amounts in Box 14, with Codes A and C, just describe the type of income reported in Box 1 of the partnership K-1. They are not added to income.

Code A indicates that the income is considered self-employment and Schedule SE has to be generated.
Code C is used to trigger the nonfarm optional method on Schedule SE (Form 1040).

jananeworleansAuthor

Thanks so much Irene! I am not very familiar with the nonfarm optional method. Can you give me a bit more information on that piece. Thanks much! It may help to know that my husband's business is a flooring business.