I have a K1 Statement A - QBI Pass Thru with 2 lines, one is SSTB yes and one is SSTB no. Each have ordinary income and W2 wages. How do I enter this info in TurboTax?

[DavidS127]

Because your K-1 is reporting Section 199A information generated by passthrough entities, 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 "main" entity, and additional K-1s with only the "box" amounts generated by each separate passthrough entity.  During the first part of the K-1 entry, all the separate K-1s use the name, address, and EIN of the "main" entity shown on the K-1 you actually received.

All the boxes 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 is for the main entity versus each passthrough entity, and that is the "split" you use to enter that box 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. 

The Section 199A Statement you received for should already "split" the Section 199A amounts between the entities, so you enter the Section 199A amounts for each entity on the K-1 you've created for that entity.

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

You'll need to put the information from the Section 199A Statement for each of the K-1s into the categories shown in the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens that occur later in the K-1 interview questions.  To find those screens, enter the code Z or V or I when you enter the K-1 box 20 or 17 or 14 screen, but you don't need to enter an amount.  Continue on, and you'll find the two screens.  When you check the box next to a category, a place will open up to enter your amounts.  These screens (if applicable to the amount(s) on your statement) must be completed 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.

[clinglee]

I'm really struggling with this. I'm getting this error and can't submit my return because of this missing or incorrect info.

Can you help?

I don't have any forms that have a Part II Line 3. I only have the Form 1065 and the Statement A - QBI Pass-through Entity Reporting. I tried to do what you noted above - to split the K-1 and the Statement A into 2 parts in the K-1 section, but I think my math is not adding up or something? I have no idea how to fix this.

[DavidS127]

That particular box is asking for the date the partnership interest was acquired.  It is needed when there was a "disposition" of the partnership during the year (e.g., sold your interest or partnership ended).  This is typically "triggered" in TurboTax when you check a box for that on the Describe the Partnership screen that you see about 8 screens into the K-1 entry.

Also, be careful about your interpretation of that "Statement A Passthrough Entity Reporting".  It may be using "passthrough" to mean passthrough to you the partner, not passthrough to the partnership from another entity.  If that Section 199A "Statement A" doesn't list amounts for more than one entity (e.g., your "main" partnership and another "passthrough entity") you may not need to "split" the K-1. 

[clinglee]

Thank you for this clarification.

Now I'm also getting a request to fill in 'Qualified coop payments', and I have no clue what that is either. 

"Qualified coop payments should not be more than the Total gross receipts or sales plus Other income reported in Part 1."

When I enter "0", I still get an error. 

I really can't tell if " "passthrough" means it's being passed through to me, the partner, and "not passthrough to the partnership from another entity". 

Per this comment: "If that Section 199A "Statement A" doesn't list amounts for more than one entity (e.g., your "main" partnership and another "passthrough entity") you may not need to "split" the K-1".

I don't see anything on my Statement A other than my name as the Partner and the Partnership Name. I'm pretty sure that there's no other entity, so my guess would be that it's a passthrough to me, the partner. If this is the case, and I don't need to split it, do I just delete the other K-1 for now and how can I get this to a point where I can actually file? This is making me think I need to file an extension. 

I have the Home and Business TurboTax version, is there any option to speak to a live person to help me with this? 

[DavidS127]

You may have to contact the preparer of the K-1 to find out how many QBI entities are being reported on the K-1 you have.  The fact that it appears to report QBI information for an SSTB entity and a non-SSTB entity on the same K-1 makes it sound like there are two QBI entities entities being reported.

For the "Qualified Coop payments" error message, do not enter any amount in that box and delete anything there including any spaces.  On the screen "Let's check for some uncommon adjustments", make sure there are no entries for the line for cooperative payments (Statement C) and check the "None of these apply" box on that screen.

Because you are using a Download/CD version of TurboTax, you can do to Forms mode (icon top right in blue bar), and find the K-1 forms you are working on.  Scroll way down to to Section D2 on the K-1 Partner, and look at Line K for any amounts that may have been inadvertently entered for coop payments.  While you are on the K-1, also look for any "shaded red" boxes that indicate errors.  Then, check the QBI Component worksheet linked to that K-1 Partnership, Line 28, for anything that should not be there for coop payments.

If you cannot find the source of the "coop payments" error message, you may be able to resolve the issue by deleting the K-1 and then re-entering that K-1.

@clinglee

[DavidS127]

What may be happening on your SSTB is that your K-1 entity sells to co-owned SSTB.  In that situation, part of the entity's earnings are classified as SSTB and part are not.

If this is your situation, it will require you to enter two K-1s: one for the SSTB portion of QBI income and one for the non-SSTB portion of QBI income.  You would "split" the other K-1 box amounts accordingly.

@clinglee

[sdrofdeb]

I also kept getting an error message on my K-1 for Code Z - QBI saying it had to be entered in Statement A.  I found if you go to the forms and click on the plus sign in quickzoom you can enter it and the error goes away.  It looks like a turbo tax bug as it should enter it there automatically from the step by step.