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What needs to be manually input for 1065 Section 199A, Box 20, Code Z

My partnership K-1 Section 199A, Box 20, Code Z lists

Ordinary Income YYYY

Self-employment earnings

Health insurance payments XXXX

W-2 wages WWWW

 

I have previously input the "Health insurance payments XXXX" under section 13 M.

 

Turbo tax then asks for "More Information on Your 199a"

There is a spot for Ordinary Income YYYY

There is a spot for W-2 wages WWWW

 

 

My understanding is that since the health insurance is 100% paid at the entity level, it needs to be recorded as a deduction. Do I put this under other deductions (looking at the actual tax forms the Health insurance payments XXXX does not appear anywhere)?

 

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1 Reply
AliciaP1
Expert Alumni

What needs to be manually input for 1065 Section 199A, Box 20, Code Z

You entered your health insurance payments correctly when you entered the information for Box 13 code M.  For the Section 199A (Qualified Business Income) calculations, health insurance payments are appropriately considered within the Ordinary Income amount.  You should enter the Ordinary Income YYYY and W-2 Wages WWWW in this section and continue entering and reviewing your return.

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