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Generating and entering S corporation K-1 in ProSeries with Other income, Other deductions, or Other information.

by Intuit• Updated 4 months ago

This article will help you generate and enter shareholder K-1s with:

  • Other income, line 10.
  • Other deductions, line 12.
  • Other information, line 17.

What's new for Schedule K-1 for tax year 2023:

For tax year 2023 the IRS has added multiple new codes to the Schedule K-1. Most changes involve new codes for Other Income, Other Deductions, Other Credits and Other Information to provide additional details for when the 1040 is completed. To see the Partnership codes click here, to see the S-Corporation codes click here and scroll down to the code lists on the last pages of the instructions.

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To generate Other income for line 10:

  1. Open the 1120S return.
  2. Open Form 1120S p3-5.
  3. Scroll down to Schedule K.
  4. Scroll down to Line 10 Other income (loss)
  5. Enter any other income not yet included in the expanding table at the bottom of line 10.
    1. Select the code and enter the amount.
    2. If using code ZZ enter the description.
  6. ProSeries will allocate these amounts to the shareholders.

To generate Other deductions for line 12:

  1. Open the 1120S return.
  2. Open Form 1120S p3-5.
  3. Scroll down to Schedule K.
  4. Scroll down to Line 12.
  5. ProSeries has predefined lines for:
    • Charitable contributions on the expanding table at line 12a.
    • Investment interest expense on 12b.
    • Section 59(e)(2) expenditures on 12c.
    • Expenses for the production of income on 12A.
    • Penalty for early withdrawal of savings on 12B.
    • Soil and water conservation on 12C.
    • Expenditures for removal of barriers on 12D.
    • Interest expenses allocated to debt financed distribution on 12E.
    • Casualty/theft loss on income property on 12F.
  6. For any non-listed Other Deduction use the expanding table below line F.
    • Select the Type and enter the Amount.
    • If using Type ZZ enter the description and the amount.
  7. ProSeries will allocate these amounts to the shareholders.

To generate Other information for line 17:

  1. Open the 1120S return.
  2. Open Form 1120S p3-5.
  3. Scroll down to Schedule K.
  4. Scroll down to Line 17.
  5. ProSeries has predefined lines for:
    • Investment income 17a
    • Investment expenses 17b
    • Dividend distributions paid from accumulated earnings and profits 17d
  6. In Table I enter any additional codes C-AW and the amounts for the shareholders.
  7. To provide additional details for entries in Table I:
    • Use Table II and enter the additional details and attach a statement to the K-1 or
    • Go to each Shareholders Schedule K-1 and scroll down to the Supplemental Information Smart Worksheet. Enter the information for disclosure to each specific shareholder.
  8. For any other disclosures and information to be reported as code ZZ use the table below line IV. Enter both the description and the amount.
  9. ProSeries will allocate these amounts to the shareholders.

To enter Other income for line 10:

  1. Open the 1040 return.
  2. Open the Schedule K-1 Wks - S Corporations.
  3. Scroll down to Line 10 Other income (loss)
  4. Enter any codes and amounts from the K-1 received.
  5. If the K-1 line 10 had codes A, B, K, S, I to ZZ select the QuickZoom to enter additional details.
  6. On the Schedule K-1 S Corporation Additional Information worksheet you'll find additional breakdowns for codes A, B, K and S. Enter the amount on the best applicable line.
  7. If the K-1 contained codes I, M to O, and ZZ:
    • Enter the amount on line 5 if it should be reported on the Schedule E page 2.
    • Enter the amount on line 6 if it should not be reported on the Schedule E page 2. Entries on line 6 will not flow to any other forms, schedules or worksheets. They will need to be manually entered elsewhere on the tax return.

To enter Other deductions for line 12:

  1. Open the 1040 return.
  2. Open the Schedule K-1 Wks - S Corporations.
  3. Scroll down to Line 12 Other deductions.
  4. Enter any codes and amounts from the K-1 received.
  5. If the K-1 line 12 had codes R, or W-ZZ select the QuickZoom.
  6. On the Schedule K-1 S Corporation Additional Information worksheet you'll find additional breakdowns for codes J, other taxes, other miscellaneous itemized deductions, state income tax withheld and penalty on early withdrawal of savings. . Enter the amount on the best applicable line.
  7. If the K-1 contained any other information:
    • Enter the amount on line 5 if it should be reported on the Schedule E page 2.
    • Enter the amount on line 6 if it should not be reported on the Schedule E page 2. Entries on line 6 will not flow to any other forms, schedules or worksheets. They will need to be manually entered elsewhere on the tax return.

To enter Other information for line 17:

  1. Open the 1040 return.
  2. Open the Schedule K-1 Wks - S Corporations.
  3. Scroll down to Line 17 Other information
  4. Enter any codes and amounts from the K-1 received.
  5. If the K-1 line 17 had codes K, D, R, or AJ-ZZ, select the QuickZoom to enter additional details.
  6. On the Schedule K-1 S Corporation Additional Information worksheet you'll find additional breakdowns for codes D and R. Enter the amount on the best applicable line.
  7. If the K-1 contained codes AJ to ZZ:
    • On the Schedule K-1 S Corporation Additional Information worksheet you'll find additional breakdowns for codes AJ to ZZ for Gross farming and fishing income, Qualified advanced coal project credit, Qualifying gasification project credit, Qualifying advanced energy project credit, and Advanced Manufacturing Investment Credit.
    • Any other amounts should go on line 6. Entries on line 6 will not flow to any other forms, schedules or worksheets. They will need to be manually entered elsewhere on the tax return.
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