In Turbotax for Business, how to I view Statement X for line 20 on the K-1?

[PatriciaV]

To view any form in TurboTax Business, click the Forms icon in the TurboTax header.

1. Look for "Statement A" in the left column under the Schedule K-1 for the partner in question.
2. Click the form name to open it in the large window. 
3. There should be a column with "1065, Line 20" at the top with more information about the information on that line.

[kempcon1]

Alas, there is no form for Statement X in the left column. I see the one for Statement A, and I can access it.  However, I have an entry in Line 20 that is  "X  *  STMT". That's the Statement I'm looking for.

But, while we're at it, let's talk about Statement A. The number on Statement A appears correct to me. It is our Ordinary Business Income. However, the figure displayed for that code on the K-1 is different. It is our interest income. Can you explain that? I would be forever grateful as TurboTax Help Center people have been no help at all.

Thanks!

[PatriciaV]

The "X" on Line 20 is the box code for the explanation on a Supplemental Information sheet that accompanies Schedule K-1. According to the Instructions for Schedule K-1, code X is for "Payment Obligations including guarantees and DROs." The supplemental info sheet should include more information about your portion of debt.

Interest Income is directly allocated to the partners and is not included in QBI for the partnership. This may be the difference you are seeing on Statement A.

[kempcon1]

Thanks, Patricia

I get it that the number the number on Statement A is Ordinary Business Income  - our QBI --and the number on line 20 is Interest - which is not part of QBI. My question is why? Why isn't the number on line 20 the QBI?Could you find someone who can explain why? Is it just a program bug?

I also get what the X stands for.  However, we don't have any "Payment Obligations including guarantees and DROs"  and I must assume that is why there is not a supplemental information sheet either. (Or at least I can't find one. None prints with the K-1, nothing shows up in the left column under forms, and none show up in a search of forms.)

So my question is similar to the one above. If we have none of what code X stands for, why is there something on line 20?  Again, can someone explain why it is there, or just tell me it's a program bug?

I guess my questions both boil down to "why."

[PatriciaV]

Form 1065 Line 20 reports Investment Income items, none of which are included in QBI. Unless you have qualified rental income, only the amount on Line 1 Ordinary business income would be used for QBI.

If you prepared the business return, you might review your entries for business credits to be sure you didn't choose something that implied using Code X. If no supplemental information is entered on the related forms, you won't see an explanation on the K-1.