MA State Adjustments to K-1 Income

Forum|Forum|2 years ago
April 7, 2024
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I have a Massachusetts Schedule SK-1 that has the state adjustments to the Federal K-1 from. TurboTax has an Activity Worksheet that allows me to enter these adjustments but they do not flow to the MA Schedule E. This is causing a problem. In particular, the adjusted income does not show up on the state schedule E. How do I do I adjust this?

TurboTax Home & Biz Windows

maglib

Employee

@cbogan3 go into the forms mode and on the k-1 worksheet, there is a section that you need to indicate which state right under the data input. I'm assuming Part III line 14, then right under it is 14I where you need to indicate the state specific amounts.

There are also some parts of the k-1 that must be entered manually as not supported that within the box 14 section will have a * which indicates manually enter item on the appropriate tax form or schedule.

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cbogan3Author

The item I need to adjust is on the K-1, Part III line1 - Ordinary business income (lose). Because MA handles, amongst other things, depreciation differently then federal, this top-line number is different and needs to be adjusted.

maglib

Employee

if you look at the K-1 Worksheet form itself, some codes will have * footnotes telling you that TT isn't doing anything with the information and you have to handle it yourself. This applies not only to line 20, but other areas of the K-1 itself (e.g., 13K). Also, in general, if you're typing in a description yourself, TT isn't doing anything with the info.

There is not an actual entry screen for the MA K-1, but you will be asked to list any differences between the amounts on the federal and MA forms.

Compare the federal and state K-1s. If they are not the same, then you have to enter the difference as adjustments to Federal Income in the state section of the program.

If the amount on the state K-1 is higher than the federal K-1, enter an addition to federal income on your MA return.
If the amount on the state K-1 is lower than the federal K-1, enter an subtraction to federal income on your MA return.

In the Massachusetts return, you will come to the Partnerships and S Corps screen. The K-1 should be listed. Click Edit.
You will be given the option to exclude the K-1 from the MA return entirely. Answer No.
Note any differences on the next screen, MA Differences - Partnership [or S Corps].