How do I enter K-1 line 20 code AJ information?

Forum|Forum|2 years ago
February 20, 2024
17 replies
172 views

Code AJ is not a choice for line 20 of the desktop K-1 input form. How do I enter Excess Business Loss Limitation information from my K-1 Partner?

Best answer by PatriciaV

The information reported on Schedule K-1 Box 20 Code AJ will be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return).

If that applies to you and you need to enter this manually, you will need to use Forms Mode (available only in the desktop versions of TurboTax). You may also need to manually complete the related Form 461.

See also:

@eshemesh

@Do_It_Myself

@Lalo86

PatriciaV

Alumni - Intuit

Schedule K-1 Box 20 Code AJ is new for tax year 2023. TurboTax has not released the updated forms for this year, which is why you are seeing an out-of-date K-1 in TurboTax for Desktop.

According to the Forms Availability Table, Schedule K-1 is expected to be released on February 21, 2024. Because updates are released after business hours Pacific time, we recommend that you wait until the next day to update TurboTax (if using the desktop version) then retry the K-1 entries.

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typeiierror

Level 2

Although the code AJ now appears in the forms section for box 20, entering an amount with that code triggers and inappropriate error. It classifies that entry as 'gasification' and wants supplemental information that doesn't apply.

I plan to ignore the error and submit the return anyway. Any other suggestions?

PatriciaV

Alumni - Intuit

As long as the amount from Line 20 Code AJ has the correct information on the Supplemental Statement A for the K-1 partners, you can ignore the "gasification" message. However, if Statement A references Code AS, you will need to wait until the K-1 updates are released.

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@typeiierror

[edited 3/6/2024 | 1:46pm PST]

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jeffm5

Level 2

I see code AJ in the dropdown, so that's a good first step.

However on the K-1 I received, the value for code AJ consists of 2 line items in a supporting statement (similar code Z, which has a supporting statement with multiple line items). In TT I am eventually asked for and can enter the various components of code Z, but don't see where I can do so for code AJ.

As a separate question, if my aggregate losses are under the threshold, can I just leave the value for code AJ blank and move or will that cause a problem elsewhere?

PatriciaV

Alumni - Intuit

If your aggregate losses are under the threshold, you may skip entering Code AJ from your Schedule K-1.

@jeffm5

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Lalo86

Level 3

After I subtract deductions from gross income I have a positive $1305 left in gross income between my wife and i’s schedule k-1’s. Do I still need to input code AJ or can I skip? @PatriciaV @GlemmaJ