I have a large amount on my K1 line 11 ZZ that is not taxable income. I get an error in Turbo Tax desktop that wants me to enter an amount on line 1 for Code ZZ on the Additional info page. If I enter a positive amount it shows as income, if I enter a negative number it shows as a loss. If I enter 0 on line 1 then enter the K1 amount on line 2 with the description for the income it seems to work. Is this an acceptable method?
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line 11ZZ is a non-standard line that could represent anything. TurboTax requires entering it on its subschedule to ensure proper classification.
it could be 1) other non-passive income (loss) that goes on Schedule E page 2, or
2) something else that could go anywhere on your return and would require manual entry on the form or schedule, assuming TurboTax even handles it.
so to help you further, we need to know what the line says. We don't need the amount.
On the K1 it says Fire proceeds from Federally declared disaster zones. This payment qualifies for exclusion from gross income under the Federal Disaster Relief act of 2023 (HR 5863)
I plan to file Form 8275 to further explain the payment.
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