Schedule K-1 with Box 20 Code Z1 with note

Forum|Forum|2 months ago
March 16, 2026
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I have received a K-1 (Form 1065) from EPD. It has a box 20 Code Z1 with a negative value.

The instructions include the note:

Code Z1 – Statement A - Section 199A Publicly Traded Partnership (PTP) Income. Use
this amount to compute your Section 199A Qualified Business Income Deduction.
Generally, you can deduct up to 20% of your qualified publicly traded partnership income.
This amount is reportable on Form 8995. This amount is reported here in lieu of reporting
it on Statement A of the Form K-1. Note this amount does not include Box 20AB, Section
751 gain (loss) from the sale of units, if applicable.

How do I use this in turbotax?

Thanks!

TurboTax Home & Biz Windows

Best answer by DavidD66

When you enter the K-1 there is section at the end where you enter Section 199A information.

On the Box 20 Info, enter the amount in box box 20 and indicate code Z1 - Section 199A Information.
On the "We see you have Section 199A income, select "The income comes from the partnership that generated this K-1.
On the "We need some information about 199A income" select the first choice "[EPD] has business income (loss)..."
Also check the boxes for any additional 199A included in the notes section (e.g. W-2 wages, UBIA of qualified property)
Continue with the remaining questions in the interview

DavidD66Answer

Level 15

When you enter the K-1 there is section at the end where you enter Section 199A information.

On the Box 20 Info, enter the amount in box box 20 and indicate code Z1 - Section 199A Information.
On the "We see you have Section 199A income, select "The income comes from the partnership that generated this K-1.
On the "We need some information about 199A income" select the first choice "[EPD] has business income (loss)..."
Also check the boxes for any additional 199A included in the notes section (e.g. W-2 wages, UBIA of qualified property)
Continue with the remaining questions in the interview

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