question on partnership return

Forum|Forum|4 years ago
April 6, 2022
3 replies
29 views

I am doing a partnership return which has a father and three children in it. He gives the two boys a paycheck and that amount is shown as payment to partner on the tax return. But the K-1 does not reflect the paychecks. Should I give them a 1099 or how do I show their income? Thank you for your help.

ProSeries Professional

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qbteachmt

Level 15

You don't get a 1099-anything from your own Partnership for that Partnership activity. You either are an employee or a partner, depending on the entity type. If they are Partners, and that is filed using 1065, then partners are also not allowed to be paid through payroll = No Paychecks. You never give someone paychecks and a 1099-NEC for the same activity.

The K-1 will not show payroll. That would show on the 1065. But that's still an error if that is Partners on payroll.

It seems you are a bit out of your depth on the topic of partnerships. You also asked this:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/question-on-partnership-return/01/216956/highlight/false#M117765

It's time to get local mentoring.

Don't yell at us; we're volunteers

Just-Lisa-Now-

Intuit Community Champion

Partners dont get "paychecks".

Guaranteed payments to partners would have appeared on the K-1.

I'm not trying to sound snarky here, but Im not sure you're qualified to prepare a partnership return.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

Good point, Lisa. This is conflicting, isn't it: "He gives the two boys a paycheck and that amount is shown as payment to partner on the tax return. But the K-1 does not reflect the paychecks."

It's hard to tell at this point how bad the Form 1065 is, or how wrong the operation is, for what they are doing and for how they are reporting it.

The filing due date for business forms was March 15. The info passed via K-1 is now gong to be used for personal tax filings. All of this needs to be reviewed, apparently.

Don't yell at us; we're volunteers

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