Partner W-2

[jamim1]

I have a client that is a general partner in a partnership. The client received a W-2 form from the partnership. The partnership has a substantial loss to pass through to the partners.

1) Should the W-2 wages be reported as guaranteed payments and added back to the partnership loss???

Jamim1

[Burke]

Partnerships do not issue W-2's to partners. P/L flows thru on K-1, subj to SE tax.

[BHoffman]

I've seen sole proprietors take W2 wages before. I would just enter the W2 and the K1 and try to explain to them the proper way to issue payments to partners for this year going forward.

Good luck!