Code Z on a partnership in box 20, represents sec 199A self employed information. Those are achieved through your active work in the business, rather than being a passive partner. Do you have anything in box 14, for the self employed income? Are you an active partner?
The statement A is derived from the other information in your k1- which seems to not be there.
Revisit the Schedule K-1 section of TurboTax and edit the Schedule K-1, then be sure to step all the way through. When you select code Z in box 20, leave the Enter Amount box blank and step past the We see you have Section 199A income to where TurboTax will ask for the types of code Z entries related to the Qualified Business Income from the partnership shown on the code Z statement included with your Schedule K-1. After you make the dollar-amount entries for each of these, TurboTax will automatically prepare the missing statement.
I did leave that "Z: field blank and it did not work. I actually was told to change the Z to a "AH" and that worked. wether it is correct or not I do not know
That is an acceptable solution, The code you entered doesn't change your tax return and doesn't require additional information to be entered.
I'm trying to enter Box 20 Code Z information into the tax return of an LLC owner of the LLC which submitted the K-1 that (properly) includes Box 20 Z information (and an accompanying Statement A). In TTX Business, on the Box 20 screen there's a box to check if Box 20 contains Code Z. I check that box, click continue, and instead of sending me to a screen to enter Statement A information, TTX kicks me back to the K-1 list. Bug?? How to report??
I am lost here with the same problem. I have a K1 for which there are no entries in any box except for box 20. In Box 20 code Z, it says STMT. In the Statement, everything is mostly 0, but I see an entry "SECTION 199A UBIA OF QUALIFIED PROPERTY" with a value of 1. Is this just too small to bother reporting? I think this is wanting there to have been some actual income, but there is none to report on this K1... As such, I'm stuck in a state where TurboTax thinks I have an error.
Follow these steps and i shall lead you out of the abyss and into the light:
Here is the order that should appear in your return in Box 20
I have followed those steps but get am still getting the same problem. I cannot currently Efile. I've provided screenshots. Either the steps provided are not correct or there is a bug in the turbotax software that should be addressed.
TurboTax is indicating that you have not entered any items of Qualified Business Income. UBIA is not QBI. You need to indicate items of income by marking one or more of the other boxes on the last page and entering the corresponding items of income such as business income from the boxes on the K-1.
There are no other numbers on the K-1. There is a code AA with $1 but nothing else on the rest of the K-1. Boxes 1-3 are empty and the only Z code with an amount in UBIA of qualified property with $12 as i had input in the screenshot. I've doing Box 2 = $0 but that did not work either.
I had the same question and was very thankful for your answer. It worked!
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!
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!!!!!!
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:
At the screen Enter Box 20 info,
@JRD82
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.
"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.
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.
Thanks Fred_Fandango - this worked like a charm - just need to remember for next year!!!
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.