I am using TurboTax Premier to do my taxes for 2022. I have a K-1 from my S-Corp, and TurboTax is telling me I need to fill out form 7023 for this K-1, a form I have never had to fill out before. I have had a few different S-Corps going back about 10 years and always do my own taxes (with software, but not always TurboTax).
I started the corporation in 2021 near the end of the year. As such, I didn't have any distributions for 2021, which may be why I didn't run into this last year.
My K1 has code "D" for line 16 with a positive dollar figure (not a loss). Again, my K-1 from 2021 has no value in this box as I did not take distributions. Looking back at older K-1s, I see that I normally had a code D and a (positive) dollar value.
I've searched reddit, the TT forums, and google in general, and I am unable to find anything definitive that says I need to fill out this form. It appears this form was new in 2021, which would explain why I never saw it for past S-Corp filings (pre-2020).
The form itself states that it should be used to when an individual: received a non-dividend distribution from an S-Corp. I also can't find anything definitive that says whether my distribution was a dividend or non-dividend distribution.
Is this something that all S-Corp owners in my situation had to start doing in 2021, and I was just unaware because I didn't pull any money out of the corporation that year?
Bottom line, based on the above, is it normal to be asked to fill this out, or is TT glitching?