TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Question

Schedule K-1 Box 20 Code Z 199A Program Error Flag

Forum|Forum|4 years ago
April 14, 2022
3 replies
44 views

I am getting an error upon final review of my federal taxes that I have been unable to resolve. I am entering information for a K-1 that has information in box 20 under both codes A & Z. I am getting an error message that states "Box 20 Code Z has been selected but no Section 199A income has been entered on Statement A." I have tried all of the steps of every solution that I have come across on the community boards and none of them have worked for me. I have tried deleting the K-1 and entering the information fresh and that did not solve the issue. I have deleted my entire return and re-entered all of the information again. This still did not clear the issue. I have tried every solution that I can think of but I cannot clear the error message. I used TurboTax last year for my return and did not run into any issues with the same K-1 & same codes last year. Is this a program issue or am I doing something wrong? I am at my wits end and any help from anyone who has experienced the same issue would be appreciated. Thanks in advance.

nexchap

Level 9

If your 20Z value is 0, don't enter it that line. Otherwise, entering a number for line 20Z triggers TT to ask about "Section 199A income" later in the interview. You have to complete these screens, particularly the one that says "We need some information about your 199A income" which asks for numbers off of "Statement A".

Note that not every K-1 is going to come with a Statement A. If you don't have one, the values you need (like Ordinary business income) will come from the K-1.

**Say "Thanks" by clicking the thumb icon in a post. **Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user. . Use any advice accordingly!

wgrady6553Author

Level 2

Thanks for the response nexchap. The Box 20Z value is $16 listed on the Statement A as "Other Deductions" with a see attached which leads to another page for "QBI Statement A Other Deductions" and then lists the $16 as "Bank Charges." I have tried leaving the initial field blank when I select Code Z and then enter the $16 later and I have tried entering the $16 in the initial box. Neither has cleared the error.

jtax

Level 10

You could just not enter Box 20 code Z. Tell TT it is blank (i.e. no code Z, enter any other box 20 items).

It is only a $16 deduction (and perhaps only 20% of that) that might not even apply to you. "Bank Charges" do not seem to me to be QBI (qualified business income eligible for the so complex 20% pass-through deduction). But QBI is so complicated I could easily be mis-understanding something.

But the point it is it a deduction. You can skip it and the IRS won't care. Don't skip income, but a small and complicated deduction who cares. Even though the word "income" is in QBI that income is already in the other boxes (e.g. box 1). A portion of that income is QBI, which in some circumstances may be partially deductible.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

jtax

Level 10

I don't know if you are using the online or the desktop version of TT. In the desktop version, see the very end of this message.

In either version be sure you have answered the 199A interview questions carefully. Have you?

199A is super confusing. Code Z is about getting the 199A QBI pass through deduction.

If the amount is small you could just leave it out. The max deduction is 20% of that amount.

But, of course, you should get every deduction you are entitled to. Here is screenshots for a test K-1 I did with box 20 code Z. Based on your answer to this screen it will ask for other info TT may need.

If you did this correctly then there may be another issue at play.

If you have TT Desktop then you can always take a look at the K-1 in forms mode and scroll down to line 20. There is a button Quickzoom to enter 1099A info.

This is the worksheet for Code Z

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

ilovemyfish

Level 2

I have entered 20 Z STMT with a blank ____, and 199A entered UBIA of qualified property XXXX with a numerical value.

I get the error too.

Section D2 line A is checked Yes, line D1 is checkedNo,

line J1 and J3 have the numerical value for the UBIA of qualified property XXXX entered earlier.

Error check won't clear the error

In forms I have the 20 Z flagged and nothing in the jump to area flagged.

I've tried entering the XXXX value in line 20 Z and blank ____ ; nothing clears the error

I want the deduction; can I fix the error? where does my deduction flow to on the 1040?

Thanks so much… Robert

Semantax

Level 2

In the same boat! Sounds like if we have a positive number it is acceptable to not enter Box 20 data but welcome confirmation.

RobbyD55

Level 2

YES! I have done the exact same things you have tried, called support she couldn’t help me and hung up, so frustrating I want to efile not paper, can anyone help us?

JamesG1

Level 15

Enter IRS form K-1 (1065) information at the screen Enter Box 20 info,

Select code Z Section 199A information. Do not enter a value to the right.
Click Continue.
At the screen We need some information about your 199A income, you will likely enter the following information:
Ordinary business income (loss) from this business, and/or
Rental income (loss).

Enter these values for the Qualified Business Income Deduction to be calculated.

Some preparers of the K-1 form will include the Section 199A information on a separate statement called a Statement A.

It is possible that additional information may need to be entered. Click the box to the left to open up entry boxes.