This form is very similar to the 1065, so if you've ever done that one and want to help I'll do my best to describe what the bits I reference are for.
If you've read one of my posts recently, sorry to keep posting about this darn form. Hopefully this is my last post about it!!
I didn't owe anything last year and all of the 1040 totals are correct, however there are somethings I noticed that I'm pretty sure are wrong…
Regarding my 2024 business return:
(1) They didn't fill in line 1 of schedule K but put only MY 40% into line 14a. (Schedule K is about the partners' distributive shares, line 1 is the company's net from Schedule B and 14a is how much of that total is self employment.)
(2) They didn't include any other schedules than were on the main provided form, however I AM a cat 1 filer. So even though I should, I dont have the first pages of K 2 and 3, and I don't even have a K-1. A part of me thinks they were confused and thought schedule K WAS my K-1 ðŸ˜
(3) when they translated this all to schedule E of 1040 they put it down as "passive" income when I'm pretty sure it's "non-passive" since I actively contributed to the business. I don't know if they interpreted my husband having 60% as me just be taking money and doing nothing… or maybe it's because the partnership only stared April of 2024…. But even then, I did at least 500 hrs of active work so I'm pretty sure it's non-passive according to the IRS 😬
Those are the three things I think I should amend. Please tell me if they were actually right to do any of this. I've been paper filing for myself this year and I noticed these things that I can't figure out why.
Even if you can't help, thanks for reading!
Posted by Ok-Extension-4568