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Returning Member
posted Apr 7, 2020 11:20:48 PM

Wages paid to our employees show up in owners' Statement A QBI pass through entity report(199A) W-2 wages section

Hi, we have filed our Form 1065 and each owner is working on their own tax return with their own K-1 form. And we found we have W-2 wages on our Statement A QBI pass through entity report(199A). When we add the amount up, the number is equal to the wages we paid to our employees which is also the number we entered at the deduction section. We owners never get W-2 since our business is losing money now. Is this an error, should we amend our 1065 tax file? Also, on our K-1, box 20, we have Z*STMT.

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1 Replies
Expert Alumni
Apr 8, 2020 6:39:48 AM

As a partner, you would not receive a W-2--you are not an employee of the partnership.   You are paid a percentage of the partnership's income, and/or a guaranteed payment.

 

There should be a statement attached to your K-1, explaining the entries for Box 20.  When entering the information from the K-1 in your return, 

  1. On the screen, Check Boxes that Have an Amount, make sure Box 20 is checked and click Continue.
  2. On the next screen, Enter Box 20 Info, enter the information.  Put each code and amount on a separate line.  If you have several entries for Code Z, leave the amount box blank.  You will be asked for details later in the interview.
  3. You will eventually come to a screen, We see you have Section 199A Income.  Mark the appropriate radio button--usually The income comes from the partnership that generated the K-1.  Click Continue
  4. On the next screen, We need some information about your 199A income, mark the appropriate boxes for the type of income and enter the amount in the box that appears,.  Click Continue when done.