It depends on the type of K1. If we assume it's a 1065-K1, then you select Box 20 on the screen 'Check boxes that have an amount or are checked on the form'. Once this is answered you will have the opportunity to enter the amounts you have on your statement for both letters A and J. See the image below.
Thanks for the message the actual code is AJ Excess Business Loss Limitation.
If you select the dropdown you will also be able to select AJ from the list, Excess Business Loss Limitation.
I did select this code as an option, but there are two numbers:
Aggregated Business Activity Gross Income or Gain
Aggregated Business Activity Deduction
Do I select this code twice and put the two different numbers in?
Yes, I see each code selected adds another line to the selection so I would select it twice, once for each number. Review your tax return before submitting.
But if one line is income and the other is for deductions, rather than total the two entries, shouldn't it be one entry for income minus deductions, or, if two entries are better, a positive entry for income and a negative for the deductions? And, by having these two entries, if it were negative, wouldn't it require a Form 461 to figure the carry-over? I don't even see that form available in TurboTax.
I have the same issue with 1120S box 17 code AJ. Although I don't believe it applies...no excess business loss, but don't want to leave blank.
Note that the information from Box 17 Code AJ will be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return). If this applies to your situation, you may omit Code AJ from your K-1 entries.
The entry for Form 1065 Schedule K-1 Box 20 Code AJ is being revised. You may sign up to be notified of updates here: Why am I receiving an error in TurboTax for Schedule K-1 Box 20 when code AJ is selected? It's uncertain if this update will include Form 1120S K-1 Box 17 Code AJ.
I have the same problem with Box 20AJ.
My k1 has a large number for “AGGREGATE BUSINESS ACTIVITY—GROSS INCOME OR GAIN” and a second smaller number for
“AGGREGATE BUSINESS ACTIVITY
DEDUCTION”
No idea how to enter these in TurboTax. And it keeps asking me to enter numbers for gasification and weird stuff that has nothing to do with me.
any solutions?
I’m having the same problem with box 20AJ. I’m being asked for a gasification amount and other info that don’t apply. Can’t move forward with submitting my return
Disclaimer: I am not an accountant or a tax expert; only the poor schlump that has to figure out my wife's and my taxes. So here is how I finally resolved this (in the Desktop version).
I Think PatriciaV gave the best explanation, without definitively answering how to deal with it. I think DianeW gave the closest to a method of dealing with it without giving a rationale. My understanding and approach is as follows:
The problem: information in your K-1 for the code AJ is reporting two figures: An aggregate for income and and aggregate for deductions. Note that these are only relevant (rephrasing my original answer) if the K-1 is reporting an overall loss for the business, if which is going to end up on your schedule E, along with other potential losses from other businesses, like on a Schedule C. if this partnership by itself, or the sum of income or losses from multiple sources that may appear on your 1040 Schedule 1 (including those from other K-1s, Schedule C income, etc.) result in a loss. Hypothetically, one partnership could have no loss, but another one might. All of the income and losses need to be accounted for, which is why you have the information here, even if it is positive. If there is a loss, and it the loss is also subject to the excess business loss rules (explained by PatriciaV), you would have to figure that limitation separately on Form 461 using the information from each source of income or loss, which TurboTax does not include. However, TurboTax does not give a guide to how to enter the information you've received.
Actually, what TurboTax is giving you is a record-keeping mechanism for recording the information you received on your K-1, to be used if needed to fill out a Form 461. If you have no losses, the AJ information is not going to appear on any forms the IRS will see in your submission. However, for the sake of completeness, you still might want to get these numbers into TurboTax.
So, in order to keep TurboTax consistent with the K-1, here's what I did:
- In the Step-by-Step, enter two AJ line entries in the Box 20 info for the two figures provided in my K-1 Statement explanation for the Aggregate Income and Aggregate Deduction. If this is all you do, you will get the error about the gasification amount.
- When the Step-by-Step asks for Other Box 20, information, I put two line items, which I labeled "AJ - Aggregate Business Income" and "AJ - Aggregate Business Deductions" with the appropriate amounts from the K-1. Now, TurboTax reports no errors.
This can also be accomplished (or double-checked) in the desktop version by going into the forms and putting the information in the relevant places. This would include the K-1 Partner form Part III item 20 and/or the K-1P Addl. Info, same section.
Likewise -- my S corp K-1 has code AJ, as well. I also don't believe it applies to my tax situation, but also would really not like to leave it blank or take an educated guess.
Hope Intuit can help us out with this one.
In case you didn't see this post earlier in the thread, you can sign up to be notified of updates here: Why am I receiving an error in TurboTax for Schedule K-1 Box 20 when code AJ is selected?
Hopefully. the update will fix 1120s as well as 1065 returns.
Any word when this will be fixed for box 17? I don't want to omit my two box 17 AJ fields on my TR.
Agg Business Activity Gross Income
Agg Business Activity Total Deductions
currently I am having the same basis for gasification error
Very interesting post above about there being no need to include any number for Box 20 - AJ, if you have no losses. My numbers are positive - no losses. Can anyone else corroborate that we can safely omit this info altogether in that circumstance?
If your business income exceeds business deductions from all sources, you have no excess business loss. The information from the K-1 wouldn't be applicable.
Here's a work-around for 1065 Schedule K-1 that allows you to enter the information but avoid the form error:
In the Schedule K-1 interview, choose Box 20 Code ZZ instead of AJ. Continue until you see "Enter Other Information Detail." Enter two lines: Label one line "AJ - Aggregate Business Income" with the number from Box 20 additional information and the second "AJ - Aggregate Business Deductions" (usually a negative number).
Your entries appear on the K-1 worksheet under Box 20 Code AJ to ZZ Line 6.
You can use the same work-around for a 1120S K-1 with Box 17 Code AG.
I have entered information from the K-1 as Patricia V suggested for a work-around. I am now getting a request for a Facility Registration Number, which I do not have.
The work-around for Form 3468 registration number: If you enter ""TMXXX99XXXXX" on Line 2a, this will allow you to e-file.
What a cluster. Sounds like Intuit doesn’t have the capability of filing my return appropriately. I was ready to submit on 2/29 when all these errors popped up like gasification and facility number etc. wished I wouldn’t have prepaid to lock in the price, I think I’d rather take this to a tax pro now. Thank you for sharing work arounds, but I like to understand what it is I’m entering into these forms. What does TMXXX99XXXXX mean? And why select ZZ instead of AJ when the statement is for AJ?
In most cases, Box 20 Code AJ doesn't apply to individual taxpayers preparing their own tax returns. Using Code ZZ allows you to record the information without triggering other forms.
The registration number is a placeholder that allows you to e-file the form.
in my case I need to use the Box 17 AJ code, is turbo tax planning to fix this issue so I can correctly file with them?
Will this be fixed before our taxes are due? Can I get a refund on the upgrade fee to try to get help that no one could give? Let your help desk know this an issue so that you don't waste their time and ours trying to figure this out when y'all knew about it for weeks.
I spoke with my accountant about this. I'm part owner of a s Corp. As part of the business tax return he's filing my k1 that will have this code AJ data. Told him about my dilemma with TurboTax. He said to go ahead and just not enter the AJ data. He said it will have no effect on my return as it's really just for data collection. I'm taking his advice. But really hope Turbo tax figures this out for next tax year