Entering Section 199A Information, Box 20, Code Z

[gotompkins]

I had two items to report in Box 20.  "A" A small amount of interest and "Z" Some rental income.  TT did not seem to do anything with the "Z" (Qualified Business Income Deduction).  I went back and looked, the amount I had entered as "Z" amount had been dropped.

[Anonymous]

scroll down to the D2 section of the k-1. 

[gotompkins]

I don't see the D2 section that you speak of on K-1.  Last year when I had "Z" entered on Line 14, there was a Schedule K-1 - 199A Supplement (Line 14) created along with the K-! for Form 1041.  This year (2019) the Form K-1 that prints by TT, is only one page and on Line 14 TT has dropped what I entered as an amount for "Z" (Qualified Business Income Deduction)

[LKCT Trustee]

I am having the same issue. I contacted support last week and they said it has been reported and they are working on the issue. I just updated my software today to see if it fixed the problem, but it is not resolved. I am commenting to follow this post.

Schedule K-1 - 199A Supplement (Line 14) is missing

[DavidS127]

To properly enter your partnership K-1 box 20 code Z amounts into TurboTax, you must Continue through the K-1 interview after you have entered your code Z for box 20.  Enter the code Z when you enter the K-1, but you don't need to enter an amount.  Continue on, and there is a screen near the end of the interview titled "We need some more information about your 199A income or loss".  This screen must be completed in order for your box 20 code Z information to be correctly input into TurboTax.

Note that the instructions are the same if you have a box 17 code V for an S Corp Form 1120S K-1, or a box 14 code I (as in India) for a trust Form 1041 K-1.

Here is a screenshot of that "We need some more information about your 199A income or loss" screen you need:

 To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.

@gotompkins

@LKCT Trustee

[lavimal]

Hi,

I followed the instructions and I still get an error that "...no Section 199A information has been entered on Statement A". I check section A and there is a final amount filled out on line 9 (combine 3, 4a,....)

Am I missing something?

Thanks

Regards

[gotompkins]

So the response from DavidS127 was helpful.  I can now get through to the end and past all the edits/audits and ready to file, only to find that I can't e-file.  I can print and mail my return. One of the major benefits of TT is the e-file feature.  Is this going to be fixed this year or must we wait until next year to e-file?

[mrpatt]

Following

[LKCT Trustee]

@DavidS127 ,

Hi David,

Thank you for the pointer, but during my 1041 interview I am not prompted as you suggested. I even tried to start a whole new return. I left the amount blank for CODE Z from my partnership K1 and it does not suggest there is anything wrong. I even ran the error check and it picked up all my other issues, but not that one. I also made sure I ran updates to be sure I have the most recent version.

Ken

[DaveF1006]

Are you preparing a K1 from a 1041, trust account? If you entered Code Z in Box 14,(there are only 14 boxes available in a 1041 K1), you will have a followup screen that asks you to put in additional information into the return. Are we talking about the same thing?

[DavidS127]

The instructions and screenshots for entering a K-1 with line 20, code Z earlier in this "thread" are for the TurboTax individual tax return (Form 1040) products.  The entry of a K-1 received by a partnership preparing Form 1041 will be different.

For a K-1 received by a trust preparing Form 1041, go to Forms mode (icon at top right in blue bar) and in the left column find the "K-1 Partner" form for the K-1 the trust received.  Click on that K-1 Partner form and it will open up in the window.  Scroll down to Section B1 and in the applicable boxes enter the information on  the "box 20 code Z Section 199A Statement or "STMT" that came with that K-1.

@LKCT Trustee

[DavidS127]

Form 8995-A Schedule B e-file will be enabled in the update scheduled on or about 4/1/2020.

[Edited 3/27/2020|11:01am PST]

@gotompkins

[TerryA]

The "Electronic filing ineligible" message for having a Form 8995-A Schedule B in the return is removed in the update coming out on April 1 next week.

[krnba]

I think we are having the same problem with the k-1 "Z" line showing up as an error.   (is it really an error is my first question?)  When I get to the quick zoom the line with the name of the K-1 is there in tiny tiny font..and a zero in the two loss boxes..which should read a loss of  $ -4000.    The boxes are locked and I can't add the loss in.

Your opinion?  Did your problem self correct?

[DaveF1006]

Here is the order that should appear in your return in Box 20

1. if there is a Z, select Z in the drop down and leave the $ blank.
2. Next screen asks about the risk.  indicate you are at risk
3. Then there will be a screen that appears that says, We see that you have 199A income.Here you have three choices to make.  pick one that is applicable to you.
4. Next screen will say we need some information about your 199A income. Scroll to the section where it mentions XXX has rental income or loss. When you select this, there will be a drop down here you enter the amount.
5. See if this clears the error.