K-1 Where/what is Statement A?

[jhensinger]

"Box 20 Code Z has been selected but no Section 199A income has been entered on Statement A."

[PatriciaV]

Statement A refers to supplemental information included with Schedule K-1. This document should provide instructions on how to complete the Section 199A income questions at the end of the Schedule K-1 interview. If you did not receive these instructions, please contact the company that sent the K-1 for assistance.

[eldon-123]

I did and the company gave me the answer.  I gave the number they suggested and it still would not take it and let me file.  I changed to another number they also suggested and it still would not allow me to file.  No matter what number I put in the box it will not accept it and permit me to file my taxes.  Can you help me?

[JulieS]

Can you clarify you question? 

Is this a K-1 from a partnership, an S-Corp or a trust?

What number are you entering, and in what box are your entering it?

Typically you enter code Z and a number and then you are asked for information from Statement A. What information did they give you?

[eldon-123]

I got the number from the K-1 tax preparer and entered what he said and turbotax would still not accept it to allow me to file my taxes.  Is there a glitch in the program?  I have no idea how to fix it so I can file my taxes.

The three figures I was given for statement A are: Net Rental Real Estate Income (Loss) -148

                                                                                       Net Section 1231 Gain - 31,818

                                                                                                            Total - 31,670

[JamesG1]

Is this a partnership?  Does the K-1 report code Z in box 20 of the K-1?

At the screen We need some information about your 199A income, many times we see the following 199A information reported:

• Ordinary business income (loss) from this business,
• W-2 wages for this business, and
• UBI of qualified property for this business.

If box 2 is $-148 and box 10 is $+31,818, there may be no 199A information reported because the K-1 reported the loss in box 2.

I do not know what 'Total - 31,670' means.

Are there other boxes reported on the K-1?

@eldon-123

[user17752705337]

I have the same problem.  I'll answer the questions you posed to the original poster with the answers for my case.  Perhaps you can help me.

Is this a partnership?  YES

Does the K-1 report code Z in box 20 of the K-1?  YES

Statement A lists values for the following:

  Ordinary business income

  Net rental real estate income

  Qualified property

Which if any of these values then gets entered into Line 20 Z Section 199A Information?

In the past I have never worried about entering the value since it has been small and has no material impact on my tax bill.  It has never prevented me from completing my taxes.

I have other partnership K-1's with Line 20 Z information.  The software doesn't complain about lack of a value on those K-1's.  I don't know what is different about this particular one that the software complains other than the other K-1's don't have both ordinary business income (actually a loss) and rental real estate income while the others only have rental real estate income.

[JamesG1]

Statement A lists values for the following:

  Ordinary business income

  Net rental real estate income

  Qualified property

It looks like you are reporting two activities under this partnership, ordinary business income and net rental real estate income.

At the screen Choose Type of Activity, click the hyperlink Learn more. The note will say:

If your K-1 shows more than one type of activity, treat each one separately. Enter all business items on one K-1, all real estate rental items on another K-1, and all other rental items on a third K-1.

So there will be one K-1 entry for box 1 income.  There will be a second K-1 entry for box 2 income.  You may have attachments or detail which explains how those items break down.  You may find qualified business income deduction information included in box 20 that refers to box 1, box 2 or both boxes of income.

The qualified property may be entered as 199A information for one or both of the activities.  The provider of the K-1 may detail which activity the qualified property is assigned to.

Click through the screens until you reach Enter Box 20 Info.

• At the screen Enter Box 20 Info, select Z-Section 199A information.  Leave Amount empty.  This tells the software that Section 199A information will need to be entered for the income previously reported.  Click Continue.
• At the screen We see you have Section 199A income, select the appropriate income description.  Click How would I know this? for more information.
• At the screen We need some information about your 199A income, select the appropriate income description and amount from the 199A detail provided with the K-1.  You will enter the qualified property under UBIA of qualified property.

 The information that is needed to complete the screen may be found on a Statement A attached to your K-1 information.

@user17752705337