I have a California LLC that has K-1 income from another partnership/LLC. The California amounts for line 1 income are $32,790 less than the federal amounts. I can't find anywhere to enter this difference. Trying to override amounts in column (c) on Page 5 results in an error and the Amount in Column does not decrease (it actually increased $6.800 which was the amount of state fees and taxes deducted on the federal return). It appears ProSeries is ignoring the override amount in column C altogether.
It appears ProSeries is still weak with regard to K-1 income on LLC and partnership returns. Entering California adjustments on individual K-1's is easy and built in to the 1040 program, but the 1065 565/568 programs do not accommodate this feature.
How can I enter California adjustments on the CA Form 568?
I don't want to enter ADDITIONAL income. I want to DECREASE the CA line 1 income from the federal K-1. The Form 568 Schedule K is normally where the adjustments would be made, but ProSeries amounts are pre-calculated and you have to over ride them, but that creates a ProSeries error--and you cannot E-file a return with overrides. As far as I can tell the Schedule IW (Page 7) is just the calculation of the LLC fee and tax that California extorts from all LLC's.
The 568 Schedule K APPEARS to allow the entry of CA adjustments, but not for line 1 or line 2 income, and those are the two lines I need to adjust. Maybe there's some line in Sch K that I can enter just a negative amount in the CA adjustments column?
I do see on Sch K that adjustment column you mention, and youre right, theres not way to cross reference to see what feeds to that column to work your way back to the point of entry.
Thanks for your willingness to help with this. I've been tweaking the return, and trying different things. I have removed my overrides on the Schedule K and I'm experimenting with making entries in various parts of the Schedule K, and Schedule M-1. I haven't made any entries on the IW, but seem to have been able to get the end result I need with the Schedule K and M-1. I've stirred the pot all I can today, I'm going to let it sit overnight and see how it tastes tomorrow. Thanks again.