topic K-1 199A Code Z in Get your taxes done using TurboTax

K-1 199A Code Z

JimFuehrmeyer — Fri, 26 Mar 2021 18:00:24 GMT

This was a pain. I have a Code Z in Box 20 of my K-1. The amount on Schedule A for that Code Z is ZERO. As in "0". I entered that. No other adjustments were necessary. The software kept calling it an error and telling me I had not entered an amount for Code Z. The software would not eFile my returns. So, I went back, said I had no Code Z, deleted the 0, and re-saved the return. It finally filed. I have seen other people with Code Z problems. So my question is: How else could I have fixed that other than deleting the Code Z?

Re: K-1 199A Code Z

ToddL99 — Sat, 27 Mar 2021 21:24:17 GMT

Removing the Code Z and "0" from Box 20 of your K-1 was probably the best, if not only, solution.

Once you told the program you had QBI income (even if "0") it was going to force you to complete the QBI deduction interviews and forms. This is a useful "bias" of the TurboTax program - if it thinks you deserve a tax break it is going to force you to finish any steps necessary to get it.

Re: K-1 199A Code Z

JimFuehrmeyer — Sun, 28 Mar 2021 15:33:22 GMT

The software did not ask me to complete any forms of any kind. It asked me the nature of the income - REIT Dividends - which I answered an entered that my share was zero. It asked me for no other information and took me to no other pages with questions. If there was more for me to enter, the system needed to take me someplace to do that. It did not.

Re: K-1 199A Code Z

DaveF1006 — Sun, 28 Mar 2021 21:26:37 GMT

It depends because since you entered a 0, Turbo Tax is looking for additional entries from a supplementary statement because of this one entry. Just remove the zero from this box and this should relieve your issues.

Re: K-1 199A Code Z

JimFuehrmeyer — Mon, 29 Mar 2021 01:59:15 GMT

You folks are missing my point. If the software is looking for additional information it should ask me for that. It should direct me to a page with questions to answer and amounts to enter. It does not do that. It took what I entered and accepted that without any other links for additional input. It asked if I had a Z; I said yes. It asked what it was; I said REIT dividends. It asked for the amount; I entered my share per the Schedule A - a zero. The software did nothing after that. It asked for no other information. It did not alert me that there was a problem until the Return Check - and it just refused to go any further; it would not file my returns. I went back over the K-1 pages and there was absolutely nothing there for me to amend. Nothing. So I said I did not have a Z in Item 20, I deleted the line item related to that, and it all worked fine. However, I do have a Z in box 20 on the actual K-1 and the amount applicable to me is zero.

I'm trying to let you know that you appear to have a "missing link" in your software. You can reply if you want, but I am done with this myself. It's your software. If you don't want to pass this on to your software tech folks that's your choice.

Re: K-1 199A Code Z

JamesG1 — Tue, 30 Mar 2021 15:01:59 GMT

I am not sure whether you had this information to report or not. Follow these directions to report 199A income from your partnership K-1.

At the screen Enter Box 20 info, you select code Z Section 199A information. Code Z tells the software that qualified business income information needs to be entered at the screen We need some information about your 199A income. Select Code Z and enter the value on the k-1 or $0. Click Continue.

At the screen We need some information about your 199A income, you are able to enter the following information if it is furnished for your return:

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

These values may be found on an enclosed statement and not on the K-1 itself.

Enter these values for the qualified business income deduction to be calculated.

The Qualified Business Income Deduction was created by the 2017 Tax Cuts and Jobs Act (TCJA) and is in effect for tax years 2018 through 2025. See this TurboTax Help

Re: K-1 199A Code Z

Brgbldr — Fri, 05 Apr 2024 03:44:13 GMT

I know this is an old message thread, but I ran into the EXACT same issue and this program sucks at how it handles it. We buy this program to have us walk through things, not to dump us off in the jungle and say, "I hope you make it through to the other side". Also, once you make an entry you can't remove it so I have now deleted and restarted this return at least three times trying to get past this PROGRAM ERROR.