Why does the K1 from my LLC partnership show payroll when I was not the employee?

rosannemartino · ‎June 1, 2019

TaxGuyBill · ‎June 1, 2019

That is just reporting your share of the W-2 wages that the Partnership paid. It has nothing to do with what you received. That number is one of several things used to calcuate the new 20% "Qualified Business Income" deduction.

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IreneS · ‎June 1, 2019

Where on the K-1 is payroll being listed? Is the K-1 from a partnership, or S-Corp?

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TaxGuyBill · ‎June 1, 2019

Are you referring to Box 20, with code "AA"?

rosannemartino · ‎June 1, 2019

Yes, referring to Box 20 with code AA, from a partnership.

TaxGuyBill · ‎June 1, 2019

That is just reporting your share of the W-2 wages that the Partnership paid. It has nothing to do with what you received. That number is one of several things used to calcuate the new 20% "Qualified Business Income" deduction.

rosannemartino · ‎June 1, 2019

Thank you!

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Why does the K1 from my LLC partnership show payroll when I was not the employee?