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Level 6
June 6, 2022
Question

Maryland Schedule K -1 Error Message Section D Line 2

  • June 6, 2022
  • 1 reply
  • 11 views

The PTE tax was recorded on federal schedule K-1, line 12 code S.  2 sharesholders 51%/49%.  The tax on respective shareholder's MD k-1's should populate correct?  Regardless, if I try to enter the amount on the 511 K-1 on the Maryland S corp return section D line 2 (total PTE tax paid)  I get an error message on the MD form 511 sch K-1 substitute the amount is incorrect - which apparently is why the return will not efile.  In turn this is creating an issue with the clients 1040 and 502 as well.  The amounts are correct, the S-Corp paid PTE tax for 51% shareholder of $510 the 49% shareholder $490.  The total on the Schedule K worksheet in the MD file should be on line 2 of section D as the total $1000, however, Proseries won't even let me enter $1000 on that line.  Not sure what I'm doing wrong.  A search of this issue hasn't turned up any similar issue with the form 511, however, I note there are still several issues with this form and the PTE reporting in general.

 

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1 reply

dsocpaAuthor
Level 6
June 6, 2022

Below is the exact error message I am receiving:

 

Sch K Wks: Sec D, Line 2 The total of all members income on Schedule K-1, Section D, line
2, $1000. doesn't agree with the amount on line 2, Section D of the Schedule K Equivalent
Worksheet. This is due to rounding. Please adjust the member's Schedule K-1 to correct
the discrepancies. If you are filing electronically, your return may be rejected if this
amount is not adjusted

Level 6
June 6, 2022

For S corporations, Proseries takes the amounts calculated on page 1 of the Form 511 on lines 7, 9 and 13c. totals them and enters them on the Sch K Equiv Worksheet in Section D, line 2.  

The software them allocates the PTE tax amount to the shareholders based on their ownership %.  Sometimes due to rounding, the amounts distributed to the K-1s will not exactly sum to the amount on the Sch. K Equiv Worksheet, so the user will have to adjust the amounts on the respective K-1s.  

One quick comment/question - I am confused by your statement that you are reporting the PTE tax on line 12, code S of the Federal K-1.  Can you explain more why you are deducting it as a flow thru deduction to the shareholder?    

dsocpaAuthor
Level 6
June 7, 2022

Thank you Mark304.  The error message is actually correct.  The real issue is how to fix it.  I tried overriding the amount on line 2 of the form 511.  I'm $2 off, and that is preventing efiling the return.  Any ideas?

Line 12 code S of the federal k-1 of the individual return is for "Other deductions".  line 3 is for state tax withheld.