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KMW3
Returning Member

Form 1065 K-1 Box 20 Code Z

Where is Code Z in the drop down menu for Box 20, Form 1065 K-1 section? Last year Code Z was available for Box 20, but in the 2023 version of TurboTax Business I am not seeing it. ? What am I missing?

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8 Replies
DianeW777
Employee Tax Expert

Form 1065 K-1 Box 20 Code Z

Code Z is in the dropdown.  You select Box 20 on the screen 'Check boxes that have an amount or are checked on the form'. Once this is answered you will have the opportunity to enter the amounts you have on your statement for Letter Z.  See the image below.

  • Search (upper right) > Type k1 > Click the Jump to... link > Continue to enter your K1

                                        

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KMW3
Returning Member

Form 1065 K-1 Box 20 Code Z

The drop down menu for Box 20 does not offer Code Z as a choice. The menu goes from Code Y to Code AA, skipping Z. Last year's turbo tax form DID offer Code Z as a choice in the K-1 Box 20 drop down menu. There is a Code ZZ (Other) but I am looking for Code Z. Not seeing it.

JamesG1
Employee Tax Expert

Form 1065 K-1 Box 20 Code Z

Are you preparing a K-1 for a form 1065 or you are entering a K-1 from IRS form 1065 into your IRS form 1040?

 

TurboTax Online Premium permits Code Z - Section 199A information in box 20.

 

 

@KMW3 

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KMW3
Returning Member

Form 1065 K-1 Box 20 Code Z

I'm trying to enter information into an IRS form 1065 for a partnership (Partnership A) that has an investment in another partnership (Partnership B). Partnership B has issued a K-1 from IRS Form 1065 and I am trying to enter that information into the Partnership A Form 1065. The K-1 from Partnership B has Code Z amounts in Box 20. But I don't see Code Z offered in the drop down menu for Box 20. I have Turbotax Business downloaded.

DaveF1006
Employee Tax Expert

Form 1065 K-1 Box 20 Code Z

According to this publication "S corporations and partnerships are generally not taxable and cannot take the deduction themselves. However, all S corporations and partnerships report each shareholder's or partner's share of QBI items, W-2 wages, UBIA of qualified property, qualified REIT dividends and qualified PTP income, and whether or not a trade or business is a specified service trade or business (SSTB) on a statement attached to the Schedule K-1 so the shareholders or partners may determine their deduction". 

 

 This is listed in a disclosure statement that you would issue to the partners that you would  include in their K-1's. The heading in disclosure statement would listed as Line 20 Code Z information. 

 


 

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KMW3
Returning Member

Form 1065 K-1 Box 20 Code Z

I'm not putting together a K-1, I'm trying to enter information on my Form 1065, from a Form 1065 K-1 that was provided to me. The K-1 sent to me has an amount in Box 20 with Code Z given for that amount. I don't see a Code Z option in the drop down menu in Turbotax when I try to enter the amount given to me on my own Form 1065.

DaveF1006
Employee Tax Expert

Form 1065 K-1 Box 20 Code Z

Yes, perhaps I wasn't clear in my previous post.  You will not enter Box 20Z information in your 1065 partnership return from a k-1 issued to the partnership. Instead, the 20Z is to be distributed to each partner,s K1 by disclosing their share of the QBI income in each partner's supplemental statement.  Please read this IRS link and read the section entitled How do S corporations and partnerships handle the deduction.

 

You may not be issuing k-1's but this is the only option to claim the Qualified Business income Deduction. You would not report QBI directly into your 1065. 

 

@KMW3 

 

 

 

 

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KMW3
Returning Member

Form 1065 K-1 Box 20 Code Z

Thank you! I understand now what you are telling me. I appreciate the IRS link.

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