Form 1065 line 20 Z and AJ

[Jubbs116]

I am confused. There is an entry Z and says statement. I do not find any numbers to support the Z. There is also AJ but on the additional statement there are 2 entries. one is gross income and one is deductions. Do not know what to do with those numbers.

thanks

[ThomasM125]

You would have to check with the issuer of the statement to be sure, but the gross income number would likely be the code Z entry for section 199A income. That is qualified business income that may give you a tax deduction. the code AJ would likely be the deduction for excess business profits. It may decrease the deduction of losses reported on the K-1 form. Put the amounts in the proper box 20 entry for Code Z and Code AJ.

[Jubbs116]

There are two entries for AJ one is gross income and the other is total deductions.  I use both or one or none? Z I don't see any 199A amount anywhere.

[KeshaH]

The issuer of the K-1 will need you to provide you with the 199A information. There's usually a separate, full page statement with the details needed.

[RuelP]

I have the same issue, but I have the statement for code Z, I just don't know what to do with the AJ.  This is a new code for this year and it has 2 values same as the OP.  For me the income and deductions have a difference which is reported as the rental income in Box 2, but I don't know what to put in box 20 next to the AJ code.

[RuelP]

this response seems helpful:

Schedule K-1 Box 20 Code AJ Description vs. TurboTax Description 

https://ttlc.intuit.com/community/taxes/discussion/re-schedule-k-1-box-20-code-aj-description-vs-tur...