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New Member

How to enter adjustments in 199A worksheet?

I'm a business co-owner of 50/50% two members LLC construction company. Does TurboTax  software calculate and fill-in all the sections of the 199A worksheet? With QBI 96,656.- I get on the sheet "Adjusted QBI" same amount. Do I have to calculate 20% from QBI and fill-in in somewhere? 

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Employee Tax Expert

How to enter adjustments in 199A worksheet?

Not on the business return.  What you need to enter on the business return is how much qualifying income did the business generate for QBI on the personal returns.  They are important figures, becasue without them no QBI calculates on the personal returns.  These figures are:

  • Section 199A income.  This is the net ordinary income or, generally, the net rental income produced by the entity.  If you are filing Form 1065, this will be an entry on Schedule K, box 20, code Z.  For form 1120S, it is Schedule K, box 17, code V.
  • Section 199A wages.  These are the amount of wages the business paid to non-foreign individuals.  (Wages are reported on a Form W-2, not a 1099-MISC).  The amount of wages the business had can help the QBI calculation if a partner/shareholder has income over the initial phaseout threshold of 157,500 for a non-married person or 315,000 if married filing a joint return.  The wages are reported on Schedule K in box 20 code AA on Form 1065 and in box 17 with a code W on Form 1120S.
  • Section 199A REIT distributions.  While distributions from Real Estate Investment Trusts are not QBI, they are added into QBI for Section 199A calculations.  These are report in boxes 6a and/or 6b and again in box 20 code AB on Schedule K of Form 1065, or boxes 5a and/or 5b and again in box 17 code X in Schedule K of Form 1120S.
  • Section 199A Unadjusted Basis Immediately after Acquisition.  The business reports the amount of property that is not fully depreciated out (if using standard depreciation methods, not Section 179 or Special Depreciation deductions).  Along with wages, this information is helpful for those whose income is above the initial phaseout thresholds.  This amount is in Box 20, Schedule K Form 1065, code AC, or Box 17, Schedule K Form 1120S, with a code Y.

The distributive share of each of these amounts will pass-through to each partner/shareholder on their Schedule K-1. TurboTax will help each calculated their QBI on their personal return.  No manual calculation is needed for the deduction. 

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Highlighted
Employee Tax Expert

How to enter adjustments in 199A worksheet?

Not on the business return.  What you need to enter on the business return is how much qualifying income did the business generate for QBI on the personal returns.  They are important figures, becasue without them no QBI calculates on the personal returns.  These figures are:

  • Section 199A income.  This is the net ordinary income or, generally, the net rental income produced by the entity.  If you are filing Form 1065, this will be an entry on Schedule K, box 20, code Z.  For form 1120S, it is Schedule K, box 17, code V.
  • Section 199A wages.  These are the amount of wages the business paid to non-foreign individuals.  (Wages are reported on a Form W-2, not a 1099-MISC).  The amount of wages the business had can help the QBI calculation if a partner/shareholder has income over the initial phaseout threshold of 157,500 for a non-married person or 315,000 if married filing a joint return.  The wages are reported on Schedule K in box 20 code AA on Form 1065 and in box 17 with a code W on Form 1120S.
  • Section 199A REIT distributions.  While distributions from Real Estate Investment Trusts are not QBI, they are added into QBI for Section 199A calculations.  These are report in boxes 6a and/or 6b and again in box 20 code AB on Schedule K of Form 1065, or boxes 5a and/or 5b and again in box 17 code X in Schedule K of Form 1120S.
  • Section 199A Unadjusted Basis Immediately after Acquisition.  The business reports the amount of property that is not fully depreciated out (if using standard depreciation methods, not Section 179 or Special Depreciation deductions).  Along with wages, this information is helpful for those whose income is above the initial phaseout thresholds.  This amount is in Box 20, Schedule K Form 1065, code AC, or Box 17, Schedule K Form 1120S, with a code Y.

The distributive share of each of these amounts will pass-through to each partner/shareholder on their Schedule K-1. TurboTax will help each calculated their QBI on their personal return.  No manual calculation is needed for the deduction. 

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New Member

How to enter adjustments in 199A worksheet?

TurboTax is not calculating any adjustments (199a) for my K-1.  Suggestions?
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New Member

How to enter adjustments in 199A worksheet?

Turbo Tax is not calculating the 20% QBI correct, and where does the credit placed on a 1120S?
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New Member

How to enter adjustments in 199A worksheet?

My Section 199A income is divided between Trade/Business and Pass-Through Entities. What total do I use? Also, in the footnotes, it allocated between SSTB and non SSTB.

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New Member

How to enter adjustments in 199A worksheet?

In the final check, I get a message "Sch K-1 Box 17 Code V has been selected but no Section 199A income has been entered on Statement A."

I entered the QBI from statement A in the supporting details box, but still get the message. What should I do to fix this?

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Expert Alumni

How to enter adjustments in 199A worksheet?

Delete the K1 form and then reenter it again. Record the information in Box 17 with code V and the dollar amount that is listed on Statement A.  See if that works. 

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New Member

How to enter adjustments in 199A worksheet?

I had the same issue..your delete K1 and reenter isn't what is really required, but doing so helped me understand the actual problem.

 

 

(My 1120 for 2019 isn't even started yet, so my objective was creating an *estimate* K1 and figured I'd update it later after my accountant finishes my biz return), so:

 

* I initially entered my K1, checked that I had boxes 16 and 17 (key to QBI calculations).  
* I did NOT enter any of the codes for box 17..just clicked continue (I first just wanted to get a rough idea on how my K1 income was going to affect my overall tax liability).

* I then just clicked through the rest of the K1 to the end.  As expected it didn't ask me any of the QBI questions (since I didn't enter any values in box 17)
* My plan was to then review my prior year K1, and figure out from it how to estimate my box V,W and X

* A few minutes later I select Edit for the K1, fill estimated values for V,W and X

* Confusingly, then I get a QBI dialog that gives you a check box for all K1 items (e.g. income, sect179, W2 wages, etc...)

* Initially, I checked ordinary business income and just reentered the same value I had already entered for Box 1 of the K1

* I didn't really understand what the other checkboxes were for as they seemed to be redundant

* I continue through the rest of the K1 questions and STILL no QBI credit

* I search here and find the delete and re-enter suggestion

* I make sure I enter values for V,W,X which then triggers the QBI dialog

* This time I realize Turbotax is insisting that you check and re-enter values for 'ordinary business income' *AND* 'w2 wages'....the later was what I was missing the first go around  (which is obviously key as if you don't pay any wages you don't qualify for QBI)

* This time, after step through the rest of the dialogs I can see my refund go up substantially as the QBI kicked in

 

At no point does Turbotax warn you that your answers to the dialogs are conflicting (e.g. you entered wages on K1 box W) yet when the QBI dialog pops up you fail to even check the 'I paid W2 pages dialog and enter the same amount there).   Absolutely no error is reported when you run 'final check' either.

 

This is the most ridiculous Turbotax bug ever.  Had I not been paying attention this would resulted in an approx ~$200K tax overpayment.  I cringe to think if the IRS would have noticed either.  Seriously!?

 

 

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New Member

How to enter adjustments in 199A worksheet?

So, the 2019 K-1 has different codes - just a code Z with two numbers - the rental loss and the unadjusted basis of assets.  No longer code AB.  There are options in TT for Code Z including Ordinary Business Income / Loss and UBIA of qualified property.   I'm still researching UBIA, but does the Unadjusted basis go here?  I received no K-1 instructions.

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Expert Alumni

How to enter adjustments in 199A worksheet?

This year you should have also received a statement with the K-1 which also needs to be entered. 

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Level 1

How to enter adjustments in 199A worksheet?

Dear DanielV01,

 

Our Unadjusted Basis is labeled X in box 17 of the K-1.

 

When filling out the 199A on Turbo Tax I do not understand which box to check to put the amount in.

 

Thank you in advance for your assistance.

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Employee Tax Expert

How to enter adjustments in 199A worksheet?

You'll need to put the Unadjusted Basis information on the K-1 Section 199A Statement into the "....has UBIA of qualifed property" box on the "We need some information about your 199A income or loss" screen.

 

Enter the code V when you enter the K-1 box 17 screen, but you don't need to enter an amount.  Continue on, and you'll find the screen you need.  When you check the box next to the UBIA of qualified property category, a place will open up to enter your amount.  This screen must be completed with the amounts on your 199A statement in order for your K-1 QBI information to be correctly input into TurboTax. 

 

To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.

 

Here is a screenshot of the "We need some information about your 199A income or loss" screen, you enter the Unadjusted Basis information by checking the box next to the last line on that screen:

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