I have 199a income on box 17 for more than one ent...
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rjb19801
New Member

I have 199a income on box 17 for more than one entity on one k-1. I do I enter that income. It only lets me enter info for one entity?

 
3 Replies
DavidS127
Expert Alumni

I have 199a income on box 17 for more than one entity on one k-1. I do I enter that income. It only lets me enter info for one entity?

Because your K-1 is reporting Section 199A information generated by the S Corp and Section 199A information generated by a pass-through entity, you'll need to "split" this K-1 into separate K-1s for entry into TurboTax.  Enter one K-1 with only the "box" amounts generated by the S Corp itself, and additional K-1s with only the "box" amounts generated by each pass-through entity.  For all these K-1s, use the same identifying information for the "main" S Corp that sent you the K-1 (e.g., name of trust, address, EIN, etc).

 

The boxes 1-17 on the K-1 you received are the combined totals of the main entity and the passthrough entities.  You must figure out how much of each box 1-17 is for the main entity versus each passthrough entity, and that is the "split" you use to enter the box 1-17 on the separate K-1s.  The total each numbered box for your separate K-1 forms must equal the total for that box on the K-1 you actually received.  For example, all box 1 amounts on the separate K-1s should add up to the box 1 amount for the actual K-1 you received. If you can't figure (deduce) that "split" from the information you have, you will need to contact the preparer of the K-1 to get those amounts.

 

Note that when you enter each K-1, you'll encounter the question "Is the business that generated the Section 199-A income a separate business owned by......?" screen, TurboTax is asking if the Section 199-A income was passed through to the "main" S Corp sending you the K-1 by another partnership, S-Corp, or trust; versus being generated by the business operations of the S Corp that sent you the K-1.  So, on one of the K-1s you enter you will answer that it is from the S Corp, and on the other you will enter that it is from a pass-through entity.  TurboTax will then ask for the name and EIN of the pass-through entity.

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ketoombs
Level 1

I have 199a income on box 17 for more than one entity on one k-1. I do I enter that income. It only lets me enter info for one entity?

When I enter the different K-1s, I go through and enter the information for the passthroughs, I enter all of the information and it won't allow me to file because it says there is an error.  neither of the passthroughs have Ordinary income or loss and it wants a number for that.  one has a w-2 and an adjusted basis and the othewr just has an ajducted basis.

DavidS127
Expert Alumni

I have 199a income on box 17 for more than one entity on one k-1. I do I enter that income. It only lets me enter info for one entity?

When Section 199A information is reported on a K-1, TurboTax requires an entry in one of the income boxes eligible for QBI treatment, on the "We need some information about your 199A income" screen.

 

For your passthrough K-1s, in addition to the "W-2 wages" and "....QBIA of qualified property" lines,  check the box for either "ordinary income or loss" or "....rental income (loss)" and enter a zero in the box that "opens up".  That should "clear" the error message you are getting.

 

The choice of "ordinary income" or "rental income" depends on which "line of business" that passthrough entity is in.  The situations when that choice could possibly make a difference for a "zero" entry are when your taxable income is over $160,700  for Single status, or over $321,400 for Married Filing Joint status, and you aggregate businesses for the QBI deduction.  If that applies to your situation, it may be worthwhile to ask about the passthrough entities if you don't know.

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