K-1 Line 20

[taxes0631]

The Z on line 20 is highlighted in pink and I keep getting an error message. I'V never had this issue before. What is causing this?

[AliciaP1]

Can you clarify which version of TurboTax you are using?

@taxes0631

[taxes0631]

I am using Turbo Tax Premier and Turbo Tax Business. My error is in the Premier Version. I have the downloaded versions.  

[Mike9241]

line 20z in a 1065 k-1 is a waste of time because that's the QBI info that must be entered later as you enter the k-1 info. box 20Z goes nowhere.. it s because the QBI info has not been entered in the proper section (D1) that 20Z is pink 

[taxes0631]

Ok I'll go back over it and hopefully find the problem. Thanks!

[AliciaP1]

As Mike9241 said, line 20 code Z is used to report your QBI income.  If your K-1 does not have an amount shown in the box, you can enter the Ordinary Business Income (Loss) amount from Section D1 of your K-1.  You will then enter the details from Section D1 later in the interview process in TurboTax.

To correct your K-1 line 20 error and your QBI income information in TurboTax Desktop Premier 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.

@taxes0631

[taxes0631]

I did all that and the pink went away. But now it says 'This form has not been approved for release at this time. You must obtain an update before you file". I checked for updates and it shows my software is up to date. So I guess I now wait!!??

[AliciaP1]

Yes, due to IRS changes in the form, it is not yet final in TurboTax.  Schedule K-1 Form 1065 or Form 1120S should be ready 02/16/2023.  You can check Forms availability table for TurboTax individual (personal) tax products tomorrow to be sure it's ready.

When it is complete, you will need to update your software and then go through the review on your tax return a final time before you can e-file.

@taxes0631