SCHEDULE K, BOX 20 I PUT IN CODE Z. I THEN GET A MESSAGE ASKING THAT I SHOW INCOME. MY K1 SHEDULE HAS NO DOMESTIC OR FOREIGN INCOME ON IT. HOW DO I RESOLVE THIS?

You can look at the supplemental schedules that came with your K-1 for information that you need to report in Box 20 Code Z. Box 20 code Z enables you to to claim a QBI deduction on your return if you qualify. Here is how to report.

1. Go to federal>wages and income>Business Investment and Estate/Trust income>Schedule K1

2. Enter information on your form in accordance with the questions asked.  

3. After entering the information regarding your K-1.  Enter information if any in Boxes 1,2, and 3. Check the box that indicates there are amounts in more than Boxes 1,2, &3.

4. Check Box 20 and press continue.

5. Now start entering the amounts in each of the boxes, when you come to Box 20

6. Pick code Z from the drop down, if there is no amount to enter next to it, leave blank. Turbo Tax will populate that amount once you finish with the questions

7. Continue through the sections. Be sure to mention that your investment is at risk.

8. And then continue through the questions. As I mentioned above, some of the information required to complete this section is mentioned in the supplemental statements that came with the K-1.  

[Edited 03-17-2021|05:17 PM PST]