How to file K1 and 199A for Trust Income in Turbo Tax

[skaybee]

I have additional income in the form of a trust. I received a K1 and a 199A. In Turbo Tax, I entered the information provided on my K1. Only lines 1 (interest income), 7 (net rental real estate income), and 14 have any information. For box 14 I have code E with a value, but then I have code I with no value. It says *K-1 Wks QBI. I did receive a statement A - QBI Pass-through entity reporting form (199A-6). It only has 1 value under ordinary business and rental income(loss). There are no other values on this form. Is this the value I enter into Turbo Tax for code I?

[JamesG1]

For IRS Schedule K-1 (1041), at the screen Enter Box 14 info, select code I - Section 199A information.  A value does not have to be entered.

Then click Continue.

At the screen We need some information about your 199A income, click the box to the left of the item to be entered.  An entry box will open.  You may be entering:

• Ordinary business income (loss) from this business,

Enter these value(s) for the qualified business income deduction to be calculated.

[skaybee]

Okay under Enter Box 14 info -  I followed the first step, entered the Code "I" and left the value blank. When I click continue, it brings me to a page called Passive Loss Carryovers. It says

Enter your passive loss carryovers as negative numbers

Passive loss carryovers from 2023:

Regular Tax ____

Alternative Minimum Tax____

What do I enter from here? It did not bring me to the We need some information about your 199A income screen.

[PatriciaV]

Continue past the pages for Passive loss carryovers and QBI Carryovers. The third page asks about Section 199A (from Box 14 Code I).

@skaybee 

[skaybee]

Thank you! I left all other questions blank and reached the page We need some information about your 199A income.

The first option applies to me:

XXXX has business income (loss) (including ordinary, rental, royalty, or other)

Ordinary business income (loss) _____

Rental income (loss)_____

Royalty income (loss) _____

Other income (loss)_____

On my 199A it combines both ordinary business and rental income(loss) on 1 line with 1 value. However, on TT it lists those two things separately. Should I enter the value under ordinary business income (loss) or rental income (loss) in TT? Does it matter?

[RobertB4444]

The ordinary income (the interest income) should go on line one and the rental income should go on line 2 in that case.

@skaybee 

[skaybee]

Let me give you an example.

line no. 1 on the 199A says:

ordinary business and rental income (loss).

There is 1 value of $45,000. That is all there is. 

TT has ordinary business income(loss) and rental income(loss) on two separate lines. Where do you put in the $45,000? 

You mentioned interest income. I see that on the K1 but nowhere else. Let’s say that is $400 for this example. 

[skaybee]

No one knows?

[PatriciaV]

Ordinary income and rental income are added together for QBI purposes, so it doesn't matter if you enter one number for ordinary or split out the total to match the income boxes from Schedule K-1.