My schedule K-1, box 17 has code V. It refers to an attached statement. The statement has X - SSTB and four lines. Each line has an amount. Which amount should I use?

[dinhtran-jd]

Ordinary income: $163,246 Section 179 deduction: $7,917 W-2 wages: $152,038 Unadjusted basis: $12,620. Any number I put in the Wages & Income section, Schedule K-1 computations, I get a "Needs review" flag during the final check.

[JamesG1 · Accepted solution]

All four entries will be entered at the screen We need some information about your 199A income,

For IRS Schedule K-1 (1120S), at the screen Enter Box 17 info, select code V Section 199A information.  A value does not have to be entered.

Then click Continue.

At the screen We need some information about your 199A income, click the box to the left of the item to be entered.  An entry box will open.  

You will be entering the four values so that the qualified business income deduction may be calculated.

[dinhtran-jd]

Thank you. That was helpful.

My error was when I got to the We need some information about your 199A income, I did not select the first box LLC has business income (loss). I thought that I had entered the ordinary business income (loss) on a previous page and that was sufficient.

After checking the box and entering the income amount, the correct QBID was calculated. Previously it was only $138, which seemed clearly erroneous to me.

However, I still have a remaining question. On the We need some information about your 199A income, I entered three out of the four amounts in Code V section. Do I not need to entered the Unadjusted Basis amount?

[PatriciaV]

No, the UBIA amount is important if it's included with Schedule K-1 Statement A. You'll need to check the box on the 199A income page.