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This question regards the 1040 return.
I prepared the partnership return. I used the import tool to import the K-1 in preparing the 1040 return. This is a retail business, both partners work it full time with no employees - it is NOT a passive activity.
I failed to check the box "not a passive activity" on the K-1 input screen, therefore the income was reported incorrectly as passive income. I filed the return.
This is year one for the business/partnership. The 1040 return result is a balance due for Federal and State.
I copied the return and checked the box "not a passive activity" on the K-1 input screen. The balance due to Fed & State did not change.
Do I need to (or should I) file an amended return with the box checked to report the income as non-passive income?
Thanks.
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