What does this error mrean "Box 20 Code Z has been selected but no Section 199A income has been entered on Statement A" ?

[IamQ]

I had the same error, and glad that I found this thread.  I did the same -- by changing "Z" to"AH" that worked for me.  I don't know if it's correct as well.  I'm glad TurboTax's error check found no error and filed my tax return.  I hope by sharing this post, it will help someone else too.  Thank you very much for sharing, mickmcd!

[jmason12]

This worked beautifully.  Thanks!

[JRD82]

After trying many many many  times with different ideas and with great frustration, I changed the Z to an AH like you suggested and it WORKED!!!!!  Like you, I have no idea if that was the right thing to do but it worked and both my state and Fed taxes got filed instantly as a result.  Thanks a million!!!!!!

[JamesG1]

If  the preparer of your K-1 provided section 199A information, you would be able to claim the Qualified Business Income Deduction. In many cases, (but not all) you report:

• Ordinary business income,
• W-2 wages for the business, and 
• UBIA of qualified property for the business.

At the screen Enter Box 20 info, 

• You select Code Z Section 199A information.
• Click Continue.
• At the screen We need some information about your 199A income, you would enter the information that the preparer of your K-1 provided.
• Enter these values for the qualified business income deduction to be calculated.

@JRD82

[Aspirin756]

I received this error for a number of real estate LLCs.  In my case the solution was to open the K-1 Form and navigate to Section D1 on Page 6, which is where the Statement A information is entered, and manually enter the reported "Rental income (loss)" from my K-1 Statement A section.

[Fred_Fandango]

"Sch K-1 Wks-Partnerships: Box 20 Code Z has been selected but no Section 199A income has been entered on Statement A."

This is one of those enormously irritating things in Turbotax (download) that Intuit can't be bothered to fix. It will trip you up year after year. It could be fixed by a programmer in 1 hour but I'm sure it wastes the time of thousands of users every tax season as they tear their hair out in frustration. If you have a real estate limited partnership, the key is that rental income (Box 2) is business income. (Who knew?)

When you get to the screen "We need some information about your 199A income" wouldn't you know but checking the the top unassuming line "[Partnership name] has business income (loss)" causes 4 hidden lines to magically appear. If your partnership owns real estate, entering Rental income (loss) [presumably from Box 2] will clear up the problem and you'll be in a position to get your 199A (QBI) deduction -- assuming you enter UBIA. Of course, UBIA is also entered on a trick line where the you must check the line to make the box where UBIA is entered appear.

Those Intuit programmers they must be rolling on the floor in peals of laughter when each unwitting user suffers through the agony. The frustration could easily be avoided by making the boxes always visible or including a note of explanation on the screen.

[dasimpso]

Be careful about using the AH workaround.  I too had this problem and none of the solutions I saw helped, so I went down the road of changing Z to AH.  Fortunately, just before I filed, I finally made it to the end of this thread where I found the Feb 2023 suggestion by @Fred_Fandango.  That did the trick for me.  I'm sure the AH workaround would have let me file, but I would have missed out on a healthy QBI deduction.

[Mike320]

Worked for me.

[johnguy_taylor]

Thanks Fred_Fandango - this worked like a charm - just need to remember for next year!!!

[TaxGuy77]

Unfortunately that still doesn't work for me. But unlike others, I have Other Deductions in my STATEMENT A - QBI Pass-through Entity Reporting.

My Box 20 has Code Z STMT. The statement has a single amount under Other Deductions.

I selected:

- Code Z with no $ amount

- At risk

- Income from same partnership that generated this K-1

- Check .. has other deductions. This opened up an entry box for Other Deductions and I entered the amount

- The next page showed: Values on Statement A needs to be changed and auto-filled the above amount under Other Deductions related to QBI.

- No significant income

- No SSTB

There were no errors till this stage, but the final check always fails with the dreaded error message. Manually editing and adding Other Deductions does not work. So this work around will not work if you have Other Deductions.

[mahercs]

Aspirin756

Level 2

I received this error for a number of real estate LLCs.  In my case the solution was to open the K-1 Form and navigate to Section D1 on Page 6, which is where the Statement A information is entered, and manually enter the reported "Rental income (loss)" from my K-1 Statement A section.

Aspirin756 nailed it with this answer. TTX isn't picking up the info unless you do the above steps!!!