SELF-EMPLOYMENT EARNINGS (LOSS) - Box 20 contains "Z - STMT" Section 199A

[laptoenail]

I have a single Schedule K-1 for a LLC I participate in. Box 20 contains "Z - STMT". The corresponding 199A contains the following four line items:

ORDINARY INCOME (LOSS)
SELF-EMPLOYMENT EARNINGS (LOSS)
W-2 WAGES
UNADJUSTED BASIS OF ASSETS

In TurboTax, I have selected code Z for box 20 to trigger the "We need some information about your 199A income" screen. I have entered the values from my 199A for W-2 WAGES and UNADJUSTED BASIS OF ASSETS in the appropriate boxes.

Here is my question: I enter the from my 199A for ORDINARY INCOME (LOSS), however I do not know if i should enter the SELF-EMPLOYMENT EARNINGS (LOSS) noted in the 199A in the Other income (Loss) section below the Ordinary Business income tab? These values on my 199A exactly match the values in Box 1 and Box 14a on my K-1. It is unclear to me if I need to enter these values on the "We need some information about your 199A income" screen or if the values are automatically pulled by TurboTax from Box 1 and 14a.

Regards

[MarilynG1]

Yes, you should enter both the Ordinary Income and Self-Employment Earnings shown on your K-1.   They represent different things, though they can be the same amount.  

The Self Employment Earnings will trigger self-employment tax on Schedule C.

Here's more info on Ordinary Income/Self-Employment on K-1. 

[laptoenail]

Thank you very much. Just to be clear, I would enter the Ordinary income in the Ordinary Business income line and the Self-Employemt Earnings in the other income line. Please note that information on the attachment indicates for a S copr but it very similar to what is being shown on my desktop version for a LLC.

[AliciaP1 · Accepted solution]

No, you only enter the line items that TurboTax prompts.  "Self-Employment earnings" is not business income to the business and is not considered in the QBI deduction.  You only need to report the Ordinary Income (loss), W-2 Wages, and Unadjusted Basis of Assets (UBIA).  

When you entered the K-1 box information, the self-employment earnings were reported correctly in box 14.

@laptoenail 

[robbinsa]

I have the same question but I see two reponses here that are contradictory from "Tax Experts." Can someone please confirm the correct way to enter this?

I have the following reported on my Section 199A from a Schedule K-1 for an LLC. This is off the statement for Box 20 Code Z. 

Ordinary Income (Loss)

Self-Employment Earnings (Loss)

W2 Wages

Unadjusted Basis of Assets

Do I enter the Ordinary Income (Loss) AND the Self-Employment Earnings? The Self-Employment Earnings would need to be entered into the desktop version of Turbo Tax under the box "Other income (loss)" since there is not a box for Self-Employment Earnings. 

[JulieS]

Enter the information exactly as it appears on your Schedule K-1. Do not leave anything off, except $0, if you have a box on your K-1 with a zero, leave the corresponding box blank in the program.

The 199A information is slightly different depending on the type of K-1 that you have. This information is used to complete Form 8995 or 8995-A, so it does duplicate some of the income figures from the earlier lines on your Schedule K-1.