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After you check the box for Line 20 and enter Code Z, you are asked about Unreimbursed Partnership Expenses and then on the next screen, you asked to enter the details of your 199A income. Return to the K-1 entry screen and enter the amounts from your supplemental statement.
Since you have code Z in box 20 on this K-1, you must enter at least one of the following from your Schedule K-1's Statement A in order to qualify for the Qualified Business Income Deduction:
-Ordinary business income (loss)
-Rental income (loss)
-Royalty income (loss)
-Other income (loss)
-REIT Dividends
The will see the following screens after entering code Z in Box 20.
Thanks for the response. I did select first option "The income comes from the partnership that generated this K-1" for "We see you have section 199A income" and "xxxxx has other deductions" for the next question. I had also provided the amount for xxxxx has other deductions".
Still I'm receiving this warning
Note that you must enter income or loss on the page "We need some information about your 199a income."
I have entered "Other Deductions" from my 199-A form. Is it also necessary to enter "Ordinary business income(loss), even though I only have"Other Deductions"?
Yes. Just enter zeroes there.
@yaswanthpusala
That worked, thank you
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