K-1 "other codes" Why is an amount required on "others" worksheet when no data is provided for code zz for gassification

[PatriciaV · Accepted solution]

The message regarding "gasification" comes from an entry from Box 20 Code AJ or Box 17 Code AG, depending on the type of K-1 you have entered. 

Here's a work-around for 1120S Schedule K-1 that should resolve the error and allow you to delete Form 3468 (if needed):

In the Schedule K-1 interview, choose Box 17 Code ZZ instead of AG. Continue until you see "Enter Other Information Detail." Enter two lines: Label one line "AG - Aggregate Business Income" with the number from Box 17 additional information and the second "AG - Aggregate Business Deductions" (usually a negative number).

Your entries appear on the K-1 worksheet under Box 17 Code AJ to ZZ Line 6.

If you are using TurboTax for Desktop and can use Forms Mode:

Check K-1 S-Corp for this entity. Make sure there are no entries for Form 3468 under Box 13 Credits.

Then delete Form 3468 if it is still on the forms list.

You can use the same work-around for a 1065 K-1 with Box 20 Code AJ.

[fogmonster]

Hi does this work for a 1065 K-1 also?

[PatriciaV]

If you haven't entered Form 1065 Schedule K-1 yet, here are the instructions:

If you follow the steps below, the information from Schedule K-1 Box 20 Code AJ will appear on an Additional Information worksheet as part of your return. How you use this information is left for you to determine and enter as appropriate. Note that Code AJ is for Excess Business Losses, which would be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return). If this doesn't apply to your tax situation, you may completely omit the following entries.

1. Working through the Schedule K-1 entry screens, check the box for Box 20.
2. Continue to the page to Enter Box 20 Info.
3. Choose AJ - Excess business loss limitation from the drop down.
4. Do not enter an amount here.
5. Continue to the page to Enter Box 20 Other Information Amounts.
6. In the section under "Other Description", enter the Supplemental Information provided with your K-1. Choose relevant descriptions then enter the amount for each line.
7. Continue to back to the K-1 Summary page.

You can review the result using Forms Mode.

1. Find K-1 Partner [name of K-1] in the forms list on the left.
2. Click on K1P Addl Info 1 under that form to open it in the large window,
3. Scroll to the bottom of the form to Code AH to ZZ: Other Information.
4. Confirm that your entries for Box 20 Code AJ appear on Line 6.
5. Click Step-by-Step to return to the main screens.

@fogmonster