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Generating and entering Partnership 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 11.
  • Other deductions, line 13.
  • Other information, line 20.

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 11:

  1. Open the 1065 return.
  2. Open Form 1065 p5-6.
  3. Scroll down to Schedule K.
  4. Scroll down to Line 11 Other income (loss)
  5. Enter any other income not yet included in the expanding table at the bottom of line 11.
    1. Select the code and enter the amount.
    2. If using code ZZ enter the description.
  6. ProSeries will allocate these amounts to the partners.

To generate Other deductions for line 13:

  1. Open the 1065 return.
  2. Open Form 1065 p5-6.
  3. Scroll down to Schedule K.
  4. Scroll down to Line 13.
  5. ProSeries has predefined lines for:
    • Cash contributions 13a.
    • Noncash contributions 13b.
    • For any other charitable contributions use the expanding table below line G.
    • Investment interest expense 13c.
    • Section 59(e)(2) expendeitures 13d.
    • Casualty/theft loss on income property 13A.
    • Medical insurnace payments for partners 13B.
    • Section 754 depreciation 13C.
    • Section 754 amortization 13D.
    • Pensions & IRAs 13E.
    • Sectoin 743(b) negative income adjustments 13G.
    • Excess business interest expense 13H.
  6. For any non-listed Other Deduction use the expanding table below line O.
    • 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 partners

To generate Other information for line 20:

  1. Open the 1065 return.
  2. Open Form 1065 p5-6.
  3. Scroll down to Schedule K.
  4. Scroll down to Line 20.
  5. ProSeries has predefined lines for:
    • Investment income 20a.
    • Investment expenses 20b.
    • Recapture of section 179 when business use drops to 50% or less 20A.
    • Business interest expense 20B1 and B2.
    • Excess taxable income 20C.
    • Excess business interest income 20D.
    • Gross receivess for section 448 20E.
  6. In expanding table below line I enter any additional codes C-ZZ and the amounts for the partners.
  7. To provide additional details for entries expanding table:
    • Use the Other Items to be Reported on Schedule K-1 Smart Worksheet or
    • Go to each Partners Schedule K-1 and scroll down to the Supplemental Information Smart Worksheet. Enter the information for disclosure to each specific partner.
  8. ProSeries will allocate these amounts to the partners

To enter Other income for line 11:

  1. Open the 1040 return.
  2. Open the Schedule K-1 Wks - Partnership.
  3. Scroll down to Line 11 Other income (loss)
  4. Enter any codes and amounts from the K-1 received.
  5. If the K-1 line 11 had codes A, B, K, S, I to ZZ select the QuickZoom to enter additional details.
  6. On the Schedule K-1 S Partnership 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, L to R, 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 13:

  1. Open the 1040 return.
  2. Open the Schedule K-1 Wks - Partnership.
  3. Scroll down to Line 13 Other deductions.
  4. Enter any codes and amounts from the K-1 received.
  5. If the K-1 line 13 had codes R, or W to ZZ select the QuickZoom.
  6. On the Schedule K-1 S Partnership 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 20:

  1. Open the 1040 return.
  2. Open the Schedule K-1 Wks - Partnership.
  3. Scroll down to Line 20 Other information
  4. Enter any codes and amounts from the K-1 received.
  5. If the K-1 line 20 had codes D, L, E, T, and AH, select the QuickZoom to enter additional details.
  6. On the Schedule K-1 Partnership Additional Information worksheet you'll find additional breakdowns for codes E, and T. Enter the amount on the best applicable line.
  7. If the K-1 contained codes AH to ZZ:
    • On the Schedule K-1 S Partnership Additional Information worksheet you'll find additional breakdowns for codes AH to ZZ for Qualifying advanced coal project credit, Qualifying gasification project credit, Qualifying advanced energy project credit, Conservation reserve program payments, 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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