The bug still exists. Four years running without a fix.
What's worse is that the workaround I posted years ago no longer works. Over-riding the error in the K-1 Worksheet now creates an error which is unacceptable.
TurboTax is using the wrong data. For the amount in Schedule E, Part II, Box 28(k), it is using an amount equal to self-employed earnings reported on Schedule K-1, Box 14a. It is supposed to be using the amount of income reported on Schedule K-1, Box 1.
TurboTax is wrong. Here's the authority from two current IRS instructions proving TurboTax is using the wrong data:
- "Report box 1 income (loss) from partnership trade or business activities in which you materially participated on Schedule E (Form 1040), line 28, column (i) or (k)." 2023 Partner's Instructions for Schedule K-1, p 15
- "For nonpassive income or loss ... enter in the applicable column of line 28 your current year ordinary income or loss (after applying any special rules that limit losses) from the partner-ship ... ." 2023 Instructions for Sched E, p E-11.
For one partner TurboTax's error makes a $3290 difference in increased tax liability.
I will be calling TurboTax support for them to find a way to get our filing correct without generating an error.
