Schedule K-1

Forum|Forum|4 years ago
April 4, 2022
1 reply
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Smart Check questions my entry of "Z" (highlighted in pink) as shown in box 20 of partnership K-1 because I have not entered any Section 199A income on Statement A. The Statement A I received shows no 199A income, only a section 1231 gain which was entered in box 10 of the K-1. If I remove the entry of "Z" on the K-1 the problem goes away and there does not seem to be any effect either way on my tax due.

AliciaP1

Level 13

You need to leave the code Z entry and continue through answering the step-by-step interview questions. You will come to a screen asking about your Section 199A QBI Pass-through Entity. It will have you enter the Section 1231 gain again as specifically QBI in order to determine your eligibility for the QBI Deduction.

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JC049Author

Level 2

AliciaP1, Thanks for the reply. That's exactly what I did, re-entered the 1231 gain amount as that is the only number entered on the Statement A received from the accountant who prepared the partnership K-1's. Turbo Tax still flags the Box 20 entry "Z" asking for the Section 199A income. Note: I see nowhere on the Statement A where "Section 199A Income" is to be entered.