This article will assist you with entering Other Deductions and Other income (loss) for Schedule K and Schedule K-1 in the Partnership module of ProConnect Tax.
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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How do I enter other deductions to flow to the Schedule K or Schedule K-1?
- Go to the Input Return tab.
- From the left of the screen, select Schedule K and choose Other Schedule K Items.
- If the other deductions are from a passthrough entity, choose Passthrough K-1's instead, click the three dots at the top of the screen and choose Lines 12-19, scroll down to the Other Deductions (13) section and proceed with step 4.
- Scroll down to the Deductions section.
- Click in the Other Deductions (Click on button to expand) field and do the following:
- Select the appropriate K-1 Code (Click on arrow to select from list).
- Enter a Description.
- If you leave this field blank, the item won't be available on the Special Allocations screen.
- Enter the Federal amount.
- Enter a St. if diff (-1=none) amount, if applicable.
- Repeat these steps for additional items, if applicable.
- Go to the Check Return tab.
- Review amounts on the Schedule K (1065) and Schedule K-1, line 13. See the statement for details.
- Review the allocations to the partners on the Schedule K-1 on Box 13. Perform the following steps if the amounts need to be allocated differently than the Profit Sharing Percentage.
- Click the Special Allocations button at the top of the screen.
- Select the description of the item you entered in the Other Deductions (Click on button to expand) field.
- The total amount available for special allocation will be shown here.
- Enter the appropriate amount for the applicable partners in the Amount column.
How do I enter other income (loss) to flow to the Schedule K or Schedule K-1?
- Go to the Input Return tab.
- From the left of the screen, select Schedule K and choose Other Schedule K Items.
- If the other deductions are from a passthrough entity, choose Passthrough K-1's instead, click the three dots at the top of the screen and choose Lines 1-11, locate the Income (Loss) (1-11) section and proceed with step 4.
- Locate the Income (Loss) section.
- Click in the Other income (loss) (Click on button to expand) field and do the following:
- Select the appropriate K-1 Code (Click on arrow to select from list).
- Enter a Description.
- If you leave this field blank, the item won't be available on the Special Allocations screen.
- Enter the Federal amount.
- Enter a St. if diff (-1=none) amount, if applicable.
- Repeat these steps for additional items, if applicable.
- Go to the Check Return tab.
- Verify amounts on the Schedule K (1065) and Schedule K-1, Line 13. See the statement for details.
- Verify the allocations to the partners on the Schedule K-1 on Box 13. Perform the following steps if the amounts need to be allocated differently than the Profit Sharing Percentage.
- Click the Special Allocations button at the top of the screen.
- Select the description of the item you entered in the Other income (loss) (Click on button to expand) field.
- The total amount available for special allocation will be shown here.
- Enter the appropriate amount for the applicable partners in the Amount column.
