Form 1065 Schedule K1 Section 199A

[jnhn]

TT deluxe indicates an error. The Amount for Box 20 Statement A is entered & Z is entered, but error is indicated.   My Statement A lists this as "Unadjusted Basis" & is entered as given, but TT says in error. How do I fix this error? 

[AliciaP1]

You also need to enter the business income in the Section 199A information along with the UBIA.

To correct your K-1 line 20 error and your QBI income information in TurboTax CD/Download you can follow these steps:

1. Within your tax return click on the Federal Taxes tab and Wages & Income then I'll choose what I work on
2. Scroll down to Schedules K-1, Q and click  Update
3. Answer Yes and click Update for Partnerships/LLCs (Form 1065)
4. Click Edit for the K-1 you need to correct
5. Verify your answers and Continue through the questions until you get to the Enter Box 20 Info screen
6. For the code Z line enter the amount in box 20 code Z from your K-1 or the Ordinary business income (loss) amount from Section D1 of your K-1 
7. Verify your answers and Continue until the We need some information about your 199A income
8. Enter the information as it shows in Section D1 of your Schedule K-1 completely
9. Continue until you get to the Partnership/LLC Summary screen and click Done
10. Proceed entering/reviewing your return.

@jnhn 

[jnhn]

Followed your steps, but still an error. Also, my K-1 has no Section D1.  I entered the UBIA as suggested in a 2020 Q&A post...still not correct. The "Z" is highlighted on the forms view, but that is correct...from my Statement A 199A list. I have no clue what to try next.  Thanks for you help. Hoping you have other suggestions.

[AliciaP1]

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the top of your screen and select Online. 

1. Scroll down to and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 
3. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@jnhn 

[jnhn]

I mistakenly identified my TT as Deluxe...it is actually Premier, Mac version. Do not have a black Panel with Online. No other obvious to send to agent.  🤷‍♀️ what else can I do?

[PatriciaV]

Section D1 appears on the Schedule K-1 Worksheet in TurboTax Forms, "K-1 Partner" in the forms list. The K-1 you received won't have Section D1, but the information entered in this section of the worksheet comes from the supplemental information that came with your K-1.

1. Go to Forms Mode, scroll down the list of forms, and click on "K-1 Partner" for this investment.
2. In the large window, scroll down to Section D1 (page 7).
3. The header information should be completed from the K-1 entries you made.
4. Enter the Unadjusted Basis number on the UBIA line.
5. If there are any other fields with red font or highlighted in red, click the Errors icon above the forms list to see the specific error in the footer below the open form.
6. When you have resolved the form errors, click Step-by-Step to return to the main screens.

[jnhn]

Well, I did this and it is still marked as an error! I tried removing that line from the Statement A, but it then marked the previous "Z" line as an error.  I believe this was the answer to a Q from 2020 or 2021, so I had already entered the "Unadjusted Basis" on the worksheet. No fix, so when I got your answer I double checked everything...still no fix.  What next?  Will I be able to file with it still an error? Didn't seem to be a problem last year.

[jnhn]

This was not the problem. Finally discovered TT did not carry over the Line 2 amount to the worksheet. I entered it manually on the worksheet. PROBLEM SOLVED!  This leads me to believe there is an error within the software. I should think this number would automatically be added to the worksheet. It did NOT involve the highlighted line error indicated.