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Level 2
March 23, 2026
Question

Is the allocation of sch C activities by percentage source income now non-functional?

  • March 23, 2026
  • 1 reply
  • 0 views

I have tried every way I can think of and worked with a support tech who looked over all of my input throughout the Fed and State returns and could find no issues but still we could not get this function to actually work.  Is this still a viable function?

1 reply

George4Tacks
Level 15
March 23, 2026

I have never used that on 1040. I have used it on Entities. 

I can not find the described input area on a Schedule C. 

I would just adjust the gross income to "make the total allocation work"

Here is a sample of what I get when I click the + on Gross Receipts

Answers are easy. Questions are hard!
Level 2
March 23, 2026

Thank you George, that essentially what I ended up doing.  Seems like the long way around though.

The input for state allocation is on Sch C -> Business Information-> about 2/3 the way down the page in the "Other Information" section.  Seems like it should work.

George4Tacks
Level 15
March 23, 2026

I set up a dummy tax return with CA resident and OR source income. This input properly showed 75% to Oregon.

Answers are easy. Questions are hard!