I prepare taxes for a person who owns 2 MLPs. Otherwise this person has the usual simple tax situation typical for most American workers. I have previously had not problem with her taxes and I don't think her ownership of a small number of units of these MLPs should create any real difficulties. However, when I tried to do her taxes, I became aware of items on the k-1 that the software I had been using would not allow me to enter, namely , in box 20 on the k-1, where my old software only alloweditems with codes A and B, while her k-1s have additional items with codes V, X, and several Ys. My question is: Do any of the software programs available handle ALL codes that might be on a k-1? I'm aware that many software products state that they handle k-1 data, but the software I previously used also allowed for entry of k-1 data, but does not support all data codes. The IRS instructions for k-1s(form 1065) consist of 32 pages of incomprehensible language pertaiining to all the codes for k-1 data, and, at least to me, do not clarify as to how to handle k-1 data in its entirety. So, I guess, I again ask whether any software is available that can handle all possible data entered on a k-1?
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twsco
Posted 1 year ago # -
Jen Udan
Posted 1 year ago #Could I ask you which tax software product you're using and for which year? It seems like the larger tax software brands that are reviewed on Tax-Compare.com can all handle schedule K-1 forms. Here is a good description on TurboTax's FAQ section that explains why some of the fields of your K-1 form might be inaccessible: http://turbotax.intuit.com/support/iq/TurboTax/Where-Do-I-Enter-Schedule-K-1-1065-Boxes-1--2--or-3-/GEN12242.html
However, this does not answer your question about Box 20. My answer is that you'd be hard-pressed to find a current tax software product that leaves out any information that would be important to the IRS, such as additional fields. I would recommend signing up for one of the major tax software brands, like TurboTax, and make sure you get an up-to-date product for the current tax season (i.e. 2011).
Hope this answers your question!
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Posted 1 year ago #Thanks for the comment. I had been using Free taxUSA.com's tax program, which is in-house generated. They do handle K-1s quite completely, but do not allow entry of any data for codes other than A or B in box 20. I've checked out turbotax and would have to go with their home and business level for over $100 for both federal and state. I may be too miserly, but that seems excessive. In checking turbotax out, one of the so-called benefits is that I could import the K-1 data into turbotax and not have to hand enter it. However, I found that only certain data can be imported, specifically, not the data I'm concerned with. This raises in my mind the question of whether turbotax would handle my K-1 concerns. It seems that much of the data on any K-1 is not there to be reported to the IRS, but rather for some arcane bookkeepping purpose. If that's the case, I might as well go with my freetaxUSA guys and save $90+. Probably the safest course would be to go through the turbotax system and see how they handle my problem data. If they handle it by ignoring it, I'll quit their system and finish up my tax at freetaxUSA.com. If turbotax does allow me to enter my box 20 , non A or B coded data, then I guess I should finish up with them and fork over the dough. Fortunately, my tax data, with the K-1 exception, are simple, so double entering is not a big deal. Actually, the main reason I use onlline e-filing is that I like the neat copies I can save and read as apposed to my own scribbled copies.
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