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Colorado K-1 and adjustments to Colorado Income

Forum|Forum|3 years ago
April 10, 2023
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When preparing my Colorado state return, how do I calculate the following:

"Schedule K-1 Decreases"

"Enter the following for each fiduciary (trust) or partnership adjustment from your Colorado Schedules K-1 that decreases the amount reported on the corresponding federal Schedule K-1. Enter amounts as positive numbers."

My question: What number do I calculate or enter from my Colorado K-1 for Schedule K-1 Decreases?

Thanks!

TurboTax Home & Biz Windows

Best answer by AliciaP1

Thank you so much, @AliciaP1.

My Federal K-1 is from an S-corp, Form 1120-S.

I follow your instructions regarding Lines 1, 5, 7, and 10 on the Colorado K-1, as well as Line 15. Thanks very much!

Here are two (hopefully final) follow-ups:

1) Regarding Line 11 -- The Federal number is a larger negative number than the negative number attributable to Colorado. Is it correct that I would enter the difference in the Increases section, versus the Decreases section?

2) Regarding Line 13 (Partner's share of toal receipts from line 8 of the DR 0106, part V) -- It appears to me that the number for Federal is just my share of the S-Corp's income -- not its profits or distributions. Also, it appears that I am not taxed at the Federal or State level on this share of the S-Corp's income. Therefore, I don't understand why I would report the difference between the Federal and State shares of the S-Corp's income on either the Increases section or Decreases section of the Colorado return. The difference is a fairly large number compared to those differences from Lines 1, 5, 7, 10, and 11.

Thanks again!

For question 1 - yes, that would be an increase in CO revenue because it's less loss.

For question 2 - no, you should not enter anything. The difference is because the CO K-1 is the same form whether the company is an S-Corp or a Partnership (and brand new for 2022). So, it is reporting the K-1 according to how it links with the federal form, but the amount does not apply to you because you own shares of an S-Corp. Leave the "adjustment" for this line blank.

@sconmifi

AliciaP1

You need to compare the amounts showing on the Colorado Schedule K-1 to your federal Schedule K-1. If any of the amounts are lower than the federal Schedule K-1, you need to enter the adjustment amount (the difference) for each box.

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S

sconmifiAuthor

Thanks, but which lines on the CO K-1 do I refer to? Is it just the difference between Line 1 in Column A and Line 1 in Column B -- or something else?

S

sconmifiAuthor

Also, I'm not sure what you mean by "each box." It looks like I can enter only one amount for the entire K-1, not different amounts for different boxes.