How to calculate section 199A items for box 17, code V?

[PaultheGhost]

I am having the exact same issue as previous user.

My K-1 Line 17 shows "V *STMT", so I did not enter a dollar amount on TT when it asked for a dollar amount showing on Line 17...

On Statement A of the K-1, it is showing Ordinary business income of $13,622.  Also showing UBIA of qualified property of $14,373.  I did input the UBIA figure and the Ordinary business income figure into TT while going through the K-1 information screens.

When I get to the end and try to e-file, I continue to get the error that Line 17 code V section 199A has been chosen but no figure has been input.  I even input a figure based on what forum readers were stating to see if it would work, but no dice...

How do you get around this?  Does it have to do with an IRS publication that TT is waiting for?  This seems to have been an issue last year as well...  same or similar issues?  At this point, this error is the only thing holding me up from e-filing my returns.  Just looking for guidance.  Thank you.

[PaultheGhost]

I have the exact same problem.  Judging from previous posts, this was an issue last year as well?  Are we waiting for an IRS publication or something?

Line 17 code V section 199A not showing a dollar amount error.  I even input a number to see if it would work, but it didn't...

[JamesG1]

For the Qualified Business Income Deduction to calculate, you need to have entries in box 17 of your K-1,  A code V with an amount.   

Statement A has more information about the items subject to shareholder specific determinations for computing the Qualified Business Income Deduction.

If your K-1 does not have those amounts in box 17 and/or you do not have the Statement A then the 1120S K-1 form needs to be revised before you can file your personal return to add that information.

At the screen We need some information about your 199A income, you will likely need to enter the following information:

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

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

[PaultheGhost]

My K-1 was generated by using TurboTax Business 2020.  It was e-filed with no issues.

I did everything you told me to do.

I even tried to enter a number into the box that asks for a dollar figure for the code V.

TT does not recognize the number and continues to generate an error telling me to input a number into that box even though I already did.

For this reason, I figured it was a system glitch.

I first tried with no number and TT asks for a number.  I DID input a number and TT still comes back with an error and asks me to input a number when there is a number in there already...

Glitch?  Waiting for IRS clarification?  Seems I am not the only person with this issue...

[JamesG1]

In TurboTax Premier, I was able to report Qualified Business Income Deduction by following these entries

• At the screen Choose type of activity, click Business box 1.  Continue.
• At the screen Did you participate?, click on Yes.
• At the screen Enter income or loss from box 1, enter positive dollar amount.  Continue.
• scroll down to Schedule K-1 and click Edit/Add to the right.
• At the screen Check Boxes, click Box 17 info.  Continue.
• At the screen Enter Box 17 info, select V-Section 199A information and enter positive dollar amount.  Continue.
• At the screen Other Situations, select All of my investment is at risk.  Continue.
• At the screen We see you have section 199A income, click The income comes from the S Corporation.
• At the screen We need some information, I clicked Ordinary business income and positive dollar amount.
• W-2 wages and amount.
• UBIA and amount.  Continue.
• At the screen Let's check for some uncommon, clicked None of these apply.  Continue.
• At the screen We're almost done, clicked No I don't think.  Continue.
• At the screen Great news! You get a tax break the screen reported a QBID of 20% of the QBI.

Was able to Review successfully.  Your situation may not be the same as above. @PaultheGhost 

[Edited 03/03/2021 2:56 PM PST]

[PaultheGhost]

OMG!!!  You are a life saver!!!

Your step by step instructions worked like a charm!!!  E-file successful!!!

I know what went wrong now because of your step by step instructions.

Not TT error!  It was MY error!!!

TT was giving an error message because the number I entered were not calculating correctly.  In essence, TT was catching MY mistake.

On the screen where it asks for more information on your 199A income, you must check and input all income which applies.  This is where I went wrong.  Since I did not choose ALL the different sources of income listed on my K-1, TT was catching this error since the numbers did not compute.  Awesome.  Not TT issue.  User error.  So sorry.  Hope this ordeal helps others in the community.  For 199A section to compute correctly, input all figures which applies to you or you may get an error message...  Thank you JamesG1!!!!!

[Anonymous]

What if you don't have a positive amount to report, though? We JUST opened a business and have W-2 wages to report from K1 box 17, code V, but otherwise every box is 0. If I put 0 for line V, it won't accept it and let me e-file. If I don't add the line V box, there's no way to report the W-2 wages. I'm stuck in a circular TT hell and wondering if it's just easier to leave line V reporting on off since there's no income/loss to report? 

[ThomasM125]

If there is no income or loss, you can leave the reporting for code V off the K-1 entry.

[sykong]

I enter net income in box 17 but it didn't solve the problem

[sykong]

There is little income as listed in Statement, and was attached to Form 1120s when file income tax for the S-Corp.

[JamesG1]

Your S corporation 1120S income may qualify for the Qualified Business Income Deduction.  Follow these directions to report 199A income from your S corporation 1120S K-1. 

• At the screen Enter Box 17 info, you likely need to select V Section 199A information.  Enter $0.
• Click Continue.
• At the screen We need some information about your 199A income, you will enter business income (loss) and, perhaps, other information such as: 

1. W-2 wages for this business, and
2. UBI of qualified property for this business.

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

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 also this TurboTax Help.

[sykong]

I follow your instruction and still not working, please help.

[sykong]

I have two properties in two different states, one has income and the other is a loss. In this section 199A items for box 17, will it be zero entry, and also zero for W2 wages and UBI ?

[sykong]

On 1040 it will be a loss, in 1020 is a gain, can I report a loss in 199A items for box 17?

[JamesG1]

It is 'not working' meaning:

• You are not generating a qualified business income deduction, or
• You are receiving an error message?

A qualified business income deduction is reported on line 13 of the 2020 Federal 1040 tax return and line 15 of IRS Form 8995. 

It is possible that a net loss by one entity will offset net income on another entity.  So, it is possible that the net loss of entity A is offsetting the net income of entity B.  It is also possible for the 2020 IRS Form 8995 to have all net income but a QBI carryforward loss from 2019 wipes out the QBID for 2020.

When you say there is a net loss and net income, are there two K-1's?  Or is there one K-1 with reporting multiple properties?  There may be an attached statement reporting as below.

                     K-1           A                 B   

Box 1        1,000        1,500          (500) 

K-1 box 1 reports $1,000 but the attached statement reports two properties that make up the $1,000 box 1 entry.

Are the entries that you described in box 1 or box 2?