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reporting a bug - Code AH rather than Code Z on Box 20 of the Schedule K-1 has negative tax consequences. Do NOT use this method

Using Code AH rather than Code Z on Box 20 of the Schedule K-1 has significant and negative tax consequences.  TurboTax will not apply the deduction you should get, you MUST enter Code Z amounts under Code Z.  Open this post for a solution !

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Highlighted
Level 1

reporting a bug - Code AH rather than Code Z on Box 20 of the Schedule K-1 has negative tax consequences. Do NOT use this method

Using Code AH rather than Code Z on Box 20 of the Schedule K-1 has significant and negative tax consequences.  TurboTax will not apply the deduction you should get from your tax due with code AH.   So you MUST enter Code Z amounts under Code Z.

 

NOTE:  TurboTax needs to fix this.  The person that placed the question to David spent a LOT of time solving this.  His post said many hours, 5 expert TurboTax experts and three days later he had the solution!  And what makes this really sad was he was a Tax Consultant that uses TurboTax.

 

Here is the solution I found with a Google search that worked for me.  This is copied from the post verbatim 

 

Employee Tax Expert DavidS127
Employee Tax Expert
‎March 6, 2020 12:00 PM

11
Enter the code Z when you enter the K-1 box 20, but you don't need to enter an amount. Keep going through the K-1 interview, and there is a screen near the end of the interview titled "We need some more information about your 199A income or loss".  That screen will have a place to "check off" the items you have, and enter an amount for each one.  This screen must be completed in order for your box 20 code Z information to be correctly input into TurboTax.
 
To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.
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