K-1 section 199! box 20 code z entity level vs. passthrough

Forum|Forum|2 months ago
March 18, 2026
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On my K-1, Box 20 Code Z statement, there is ordinary loss from the entity and Ordinary income listed under 2 businesses as passthrough.

How do I report this on my tax return.

ThomasM125

Level 15

I think you mean you have QBI from other entities besides the one the K-1 is coming from. If so, you need to make more than one code Z entry in box 20. You can do that and on another screen it will say We see you have Section 199A income. On that screen you have an option to indicate that the QBI comes from another business and when you choose that option, you can enter in the business name and EIN of the other business.

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user17739425089

Level 2

No. It is not from another business not listed on the K-1. THe business that is listed on the K-1 is divided on the K-1 statement for Code 20 explanation into "entity" and two other businesses.

ThomasM125

Level 15

It sounds like the entity that issued the K-1 has an interest in other entities and their QBI income is listed on the K-1 form. So, you have QBI from the entity that issues the K-1 and also from two other entities. It says in TurboTax "Is the business that generated the 199A income a separate business owned by the partnership?" On your K-1 "Entity" means the company that issued the K-1, and the two other entities are simply associated with that entity.

If so, you should make a code 20 entry for each one. Then, you will need to address the questions regarding income from other entities besides the one that generated the K-1 schedule.

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