I have a K1 from a publicly traded partnership (PTP). It lists a loss in Part III, line 20, code Z, which is "Section 199A". Turbo Tax states I need to enter information from the "Statement A" that provides more information on Section 199A activity. However, I did not receive a Statement A or comparable document. What do I do now?
there may be no statement A the info would be in box 20
QBI income or loss
w-2 wages - may not be present
unadjusted basis immediately after acquisition (UBIA) - may not be present
My problem is similar.
I have multiple K-1 (Form 1065) documents. Each have a entry labeled as "Z" in line 20.
There is no such thing as "Statement A." That is a bogus term TurboTax uses for some reason. Instead, the "statement" TurboTax seems to be--as best I can tell--referring to is the "Supplemental Schedule." (One of my K-1s says "K-1 Supplemental Information Schedule" and the other just says "Supplemental Schedule.")
The only thing this supplemental schedule lists as far as 199A is "Section 199A Publicly Traded Partnership (PTP) Income." Everything else on it is not relevant to line 20 or 199A issues.
The other problem is that after entering the info from the K-1 documents, which is for me:
- "Enter Box 20 Info" (I entered the Z line with the value)
> "How to Enter Code N Information" (info only)
> "Enter Box 20 Code AH Amounts" (not relevant to this problem)
> "Describe the Partnership" (I enter that my investment is at risk)
> "We see you have Section 199A income" (I selected that it came from the partnership that generated the K-1)
> "We need some information about your 199A income" (the only option that makes sense is "... LP has business income (loss)" so I select it)
- New options below that open, and--again, as best I can tell--the label "Section 199A Publicly Traded Partnership (PTP) Income" means "ordinary business income (loss)."
That seems to have removed the error I was getting related to 199A. Is it correct? I have no idea because TurboTax does not make it clear that this is the correct process.
Statement A is the IRS term for the additional statement that is required to be reported with a K-1 (regardless of the entity type) if the entity is reporting Section 199A Qualified Business Income that may allow you to take the Qualified Business Income Deduction on your personal return. The format allows you to properly identify the 199A items for reporting which is the issue you're having. You may want to ask your partnerships to provide you with the correct statement.
Without having the statement to correctly identify your items, you could cause delays in the processing of your tax returns.
What do I enter in for the amount? I have try everything for 2 hours
You will need to contact the company that sent you Schedule K-1 for guidance on reporting Section 199A for this investment. Guessing will not work.
I contacted the company that sent me the K-1 called Energy Transfer LP. They said the statement A does not exist and that the K-3 will not be available until June or July. I do not want to delay turning in my taxes for 2022 until June or July just waiting for a form that my well not apply to me. How can I get past this turbo tax request for a statement A and be able to send in my taxes by April 15, 2023?
Leave the amount in Box 20Z off your return. You can file it and if the K3 arrives and has more information you can amend your return at that time.