Why this message: "Sch K-1 Box 20 Code Z has been selected but no Section 199A income has been entered on Statement A" when I have entered requested income?

To clear this message, return to the Schedule K-1 topic under Business Items and review your entries for this investment. It's possible that not all questions were answered.

By checking Box 20 with Code Z, TurboTax should follow up with a page "We see you have Section 199A income" and three choices for the source of that income. Be sure you check one of these boxes.

Continue through all the screens for 199A income, entering values and checking boxes as needed, including specified services. Continue until you return to the K-1 Summary page to save your work.

Run Federal Review again to be sure the message has been resolved.

Instead of " a page "We see you have Section 199A income" and three choices for the source of that income. Be sure you check one of these boxes," I only see a single page titled "Enter Box 20 Info" with a long list of dropdown choices, from which I select "Z - Section 1009A Information" and enter the dollar amount. The Federal Review says no income entered, yet I can see the information. Thus the error message doesn't agree with my reality. Five TurboTax employees have tried to help, and two of them seemed knowledgeable about Sch K1 and agree there appears to be a glitch in the review program.

Since we have been unable to reproduce this experience, it would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Open your return in TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

Finally Turbotax employee Linda zeroed in on the solution to the problem.  So Patricia V's answer was correct but incomplete--you enter Z but disregard Turbotax's instruction to also enter the amount of income on that same line. On another page you check the box about Statement A and then receive the proper box to enter the 199A income. Obscure, but as a scientist, I find a lot of tax accounting instructions to be obscure.

I have the same problem. Spent over an hour on the phone with a TurboTax product specialist and she was unable to find a solution. She appeared to be very knowledgeable about the product, so I don't believe her competency was in question. She shared my screen and we went through the process several times without passing the review.

On the same screen where you check the 6th box and enter the UBIA of qualified property, you need to check the 1st box, which mentions Statement A, and enter the rental/income (Loss) there.

Thank you. Was stuck for a while but this solved it for me.

I am still having this problem. We have checked that all the correct boxes are checked and filled in and are still getting the error message. We cannot e-file until it is corrected. Is there a solution now?

Please review these steps after you have entered Code Z for Box 20 (Form 1065 Schedule K-1):

1. Continue answering the interview questions until you get to the We see you have Section 199A income screen. Select the source of ‌income and Continue.
2. Check any applicable boxes on the We need some information about your 199A income screen.
3. Only enter amounts from your Section 199A Statement, not any of the other boxes on the K-1 form. When you check the box next to a line, an additional box will open where you can enter the amount from your Section 199A Statement for that line.
4. Select Continue and you’ll see the Let’s check for uncommon adjustments screen. Enter value(s) on Statement A that need to be changed and/or any business income received from a specified agricultural or horticulture cooperative on Statement C.

@pbandj7777 

Followed all those steps.  Entered the Section 199A income (it happens to be a loss -30,399) and the review still comes back with the same message.

You might try deleting the K-1 entirely. You can do this from the K-1 Summary page or from your forms list (see below). 

Close TurboTax. Clear cache & cookies (if using TurboTax Online). Restart TurboTax, open your return, and reenter Schedule K-1. Leave the amount for Box 20 Code Z blank, then enter the detail on the next page. Run SmartCheck again.

See also:

• How do I view and delete forms in TurboTax Online?
• How do I delete a tax form in the TurboTax CD/Download software?
• How do I delete cookies?
• How to clear your cache

@pbandj7777 

Thanks for the reply.

I removed the K-1, cleared all history, logged out, etc.  Re-entered the K-1 and included the Section 199A Income from Z section (this was the loss $-30,399) and the final review still came back with the same error message, saying no income has been reported.  Not able to e-file because of this. What can we do next?

We have tested this K-1 entry but are unable to reproduce the experience you have seen. It would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, please follow these instructions: 

In TurboTax Online, open your return, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number and tag (@) the Expert requesting the token from you. 
6. Please include any States that are part of your return.

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

Token #1219896

@PatriciaV 

Kansas is only state included

Please return to the K-1 entry screen and work through the interview to Box 20. Delete the number you entered in the amount box. Continue until you are asked about Section 199A Income. Check the appropriate box for the detail reported to you on Statement A, then enter the amount in that box for that income(loss). See screenshot below (click to enlarge).

Note that Section 1231 gain(loss) was checked on the 199A page, but there was no amount. If this is where the <30,399> should go, enter that amount for this line. But if this was an ordinary business loss, you need to check the first box, enter the amount, and uncheck the box for Sec 1231.

@pbandj7777

I updated the K-1 and deleted the number entered in the Box 20 question.

I continued on to the Section 199A Income. I had entered the -30,399 there previously, but it now appeared blank. I entered that number again (on the Section 1231 gain/loss line because my page 1 of the K-1, Part III line 10 lists Section 1231 loss.) This loss is entirely from selling the duplexes of Hidden Valley Duplexes LLC.

I do not have a Statement A form, but I do have a 1065 K-1 Attachment that lists Box 20 information, line Z Section 199A information.  Section 199A income has -30,399 entered. (This is why I entered on TurboTax Section 199A page)

When I ran the review again, I received the same error message saying there was no 199A income reported.

Enter zero for ordinary or rental income on the Sec 199A entry page. That should resolve the review error.

Got my problem solved following the instructions, i.e. deleting amount in Z and entering the amount in each category later.  Found I did correct last year but wrong this year.