I assume that this is a partnership? It does sound like you will be entering multiple K-1 entries.
Follow this procedure for a partnership K-1 with box 20 code Z:
- Enter your code Z on the box 20 screen. You don't need to enter an amount on that box 20 screen, but you do need to click Continue after you have entered the code Z. It does not hurt anything if you have an amount on the box 20 screen for code Z, but the amount you enter there is not processed.
- The next screen is Describe the Partnership and the next screen is We see you have Section 199A income and then you should get We need some information about your 199A income, followed by Let's check for some uncommon adjustments. When you get to those last two screens, when you check the box on a line, other boxes will open up to enter the amounts from your Section 199-A Statement/STMT.
Many times you enter:
- Ordinary business income (loss) from the business,
- W-2 wages for this business, and
- UBI of qualified property for this business.
Your K-1 may be structured as follows where box 1 or box 2 reports the total of the three entities but attachments break out the income by entity.
K-1 Main partnership A B
Box 1 1,000 500 200 300
During the first part of the K-1 entry, all the separate K-1s use the name, address, and EIN of the main partnership shown on the K-1 you actually received. Enter each additional Schedule K-1 just like the first. Capital information is only reported on the main partnership.
At the screen We see you have Section 199A income,
- You will click The income comes from the partnership that generated this K-1 for the main partnership,
- You will click The income comes from another business for the other two partnerships.
The separate section 199-A statement that you received for box 20 code Z should already split the Section 199-A amounts between the entities, so you enter the Section 199-A amounts for each entity on the K-1 you have created for that entity.
Note that when you enter each K-1, you will encounter the question Is the business that generated the Section 199-A income a separate business owned by the partnership? screen. TurboTax is asking if the Section 199-A income was passed through to the partnership sending you the K-1 by another partnership, S-Corp, or trust; versus being generated by the business operations of the partnership that sent you the K-1. So, on one of the K-1s you enter you will answer that it is from the main partnership, and on the others you will enter that it is from a pass through entity. TurboTax will ask for the name and EIN of each pass through entity.
See also this TurboTax Help.
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