I have form 1041 schedule K-1 with 4 entries in Box14, two coded as I* showing "STMT", and 2 coded as Z* with values. Are values required, or is it ok to leave as STMT?

I also have a form 1041 schedule K-1 with Box 14 entry coded "I" and  "STMT" in the amount column.  On the  Schedule K-1 -199A Supplement (Line 14) form It shows an amount under the QBI Code I column and the SSTB box on the far right is empty.

If I input the amount on the 199A Supplement form into the K-1 Line 14, it thinks that I am eligible for the QBI 20% deduction which I am not eligible for.  I am the executor of the trust and it does not qualify for the QBI deduction.

When I leave the Line 14 amount blank, then I do not receive the QBI 20% deduction, which is correct.

When I created the K-1 form in Turbotax Business, I experimented with the "Does the business qualify for the QBI 20% deduction?".  When I said yes, the box on the 199A supplement had a "X" in the box under "SSTB".   When I said no, the "X" in the 199A Supplement form under SSTB disappeared which it should have.

I think there should have been a question in Turbotax Premier asking if the box on the 199A supplement form under "SSTB" is checked or not.  It would have saved me hours of searching for the correct answer.

To sum up, I left the numerical entry for Line 14 Code "I" blank which I believe is correct if the business does not qualify for the QBI deduction.  Am I correct in my thinking?

So I was correct in leaving the amount blank on Line 14 in order to NOT receive the QBI 20% deduction (which I am not qualified to take)?

Thanks!  I appreciate your expertise in the estate and trust areas in Turbotax.

I'm still a bit confused (even after 2 expert tech support phone calls) about what forms are supposed to be created by TT Buisness in regards to QBI.  I have a Simple Trust with mineral royalty income that DOES NOT qualify as QBI. When I made the entries in TT, I answered the question "Is this QBI?" as NO and proceeded through the rest of the return. When I preview the return, TT is adding the page "Qualified Business Income Pass-through Entity Reporting Statement A - QBI" to each of my K-1s. The beneficiary's share of income is listed as Rental Income under the heading of "QBI or Qualified PTP items Subject to Beneficiary-specific Determinations". None of the boxes in the column of PTP, Aggregated or SSTB are checked. The six K-1s are a bit messed up too because for some reason, TT added Code I and SMT to only the first two but not the other four. There is no explanation as to why this would happen since all six beneficiaries are the same.

My 1st question is, why is the supplement Statement A even printing with each K-1 when the income is NOT QBI and not all of the K-1s even had the Code I SMT on them? The tech support person agreed that I could override the two that had it to take it off. Thus the only code in Box 14 is E as it usually is every year. It is misleading to me to have that supplemental Statement A because it leads one to believe that the income IS QBI. (on a side note in case this is the reason for it showing up .... in last year's 2018 return, I mistakenly did say that the income was QBI but have since done more research and determined that it is not. Is this for some reason why it's showing up?) Also, TT will not let me delete the Statement A pages under the "Forms" view.

My 2nd question is, IF in the 1st question it is determined that the supplement Statement A should be printed with all the K-1s even though it's not QBI, then should I go and override the rest of the K-1s to add the Code I STMT to the K-1s?

At this point I'm really thinking that it's a bug in the program that needs to be fixed due to the Statement A being a new IRS requirement this year so appreciate any input you can provide. Thank you so much for your help!

@AllyR  Try this:  Click on "File", then click on "Distribute K-1s", click on "Print".

Does the Supplement Schedule A still appear?

@rambo2019  It doesn't!! Why is that when it shows up in the entire pdf of the 1041 when I review it? BUT ... the first K-1 still has the Code I* STMT for some reason and the other 5 don't! That's an easy fix to override it but it shouldn't be showing up on there in the first place.

@rambo2019   Does it matter that the forms that are submitted to the IRS have the Statement A attached to each K-1 as well as the overall Summary Statement A? I checked on the Print Forms and "All official forms required for filing" and see that each K-1 has the Statement A attached. I'm not going to print and distribute that with the beneficiary K-1s however.

As an added note for others who may run into this problem ... one other thing that I had done was to go to the "Forms" view and click on my Schedule E and went about a 1/3 of the way down to the "Qualified Business Income Deduction Info (Review Each Activity Below)" and then put an X in Line A "Check if activity is NOT a qual trade/business".  This was mentioned in an information box after right clicking on the amount in the summary page and choosing "About Rental Income". It said to do this so that may also be why it's now OK where Rambo2019 said to print the K-1s from. Hope this helps others!

@rambo2019 If you have time, could you give me a quick answer on my question above about whether it's OK to e-file the trust return when the Statement A is attached to each K-1 even though there was no QBI and I sent the K-1s without the Statement A as you explained how to do in a previous answer. I'd like to e-file the return soon but just wanted to double check on this situation before doing so. Thank you!

@AllyR  I e-filed my trust return with the Statement A attached to each K-1 form on February 6, 2020.  The IRS accepted the trust return within a few hours.  Last year, I filed the trusts return the same way, no problem.

I think you will be fine e-filing with the Statement A forms attached.  TurboTax Business has been known to be quite buggy over the years.