The following diagnostic is generating in the S-Corporate return:
There are discrepancies between the federal Schedule K and Schedule K-1 for certain line items. The totals for all Schedule K-1 for these line items does not match the corresponding amount on Schedule K. Please refer to the Schedule K/K-1 Reconciliation Worksheet for detailed information on the potential error(s) and adjust the amounts entered for Schedule K-1 overrides as necessary. (ref. #377) or (ref. #25513)
Follow these steps to check for discrepancies:
- Go to Check Return.
- Select Forms.
- Review the Schedule K/K-1 Reconciliation Worksheet.
Solution 1: If the difference is related to Property distribution other than dividends.
If the difference is related to Property distribution other than dividends, you made an entry only on under Other Schedule K Items, you need to make a corresponding entry for each shareholder.
Follow these steps to enter property distribution other than dividends for each shareholder:
- Go to Input Return ⮕ Shareholder Information ⮕ Distributions, Loan Repayments.
- Enter the corresponding distribution amount for each shareholder.
- Make sure the Total Distributions equals the amount in Other Schedule K Items.
Solution 2: If the difference is Other Credits.
If the difference is Other Credits, you need to enter the amount under Schedule K Credits.
Follow these steps to enter the Other Credits amount on Screen 26:
- Go to Input Return ⮕ Schedule K ⮕ Credits ⮕ Schedule K Credits.
- Select the Other tab.
- Scroll down to the Other Credits - Schedule K Lines 13C - 13G section.
- Enter the difference in Other credits