When entering multiple K1s forms for Part III for Box 1/2/3 do you skip the Code Z

[Peter1899]

When entering multiple K1s forms for Part III for Box 1/2/3 do you skip the Code Z in Box 20 question for the second and third K1  Turbotax forms. 

[JamesG1]

[Edited 04/09/25 | 7:23 pm PST]

@Peter1899 

[Peter1899]

There is only one  20Z1 ( Box 1? ) and there is no 20Z2. When  populating the  second K1 for the Box 2 do you reuse the 20Z1? 

[JamesG1]

Sorry for being unclear.

At the screen Choose Type of Activity, click This K-1 reports in more than one of boxes 1,2, and 3.

Since your K-1 reports amounts in more than one of boxes 1, 2, or 3, the partnership/LLC is involved in more than one type of activity.  You should treat each activity separately in TurboTax.

So there will be one K-1 entry for box 1 income.  Only click on box 1 and the statement "This K-1...".

There will be a second K-1 entry for box 2 income.  Only click on box 2 and the statement "This K-1...".

Each of these K-1 entries will have its own Box 20 to report Z - Section 199A information.

The preparer of the K-1 may have included attachments or detail which explain how the section 199A information is broken down for box 1 and box 2.  

Ideally, the original K-1 and the attachment provided by the preparer of the K-1 would look something like this.

Original K-1                                                         Box 1 only                                                           Box 2 only

Box 1     $1,000                   =                             $1,000

Box 2     $500                      =                                                                                                            $500

Box 5     $100                      =                             $75                                                                         $25

Box 6a   $200                      =                             $150                                                                       $50

Box 6b   $100                      =                             $75                                                                         $25

W-2 wages $50,000            =                            $25,000                                                                 $25,000

UBIA $100,000                    =                             $50,000                                                                 $50,000

@Peter1899 

[JamesG1]

Sorry for being unclear.

At the screen Choose Type of Activity, click This K-1 reports in more than one of boxes 1,2, and 3.

Since your K-1 reports amounts in more than one of boxes 1, 2, or 3, the partnership/LLC is involved in more than one type of activity.  You should treat each activity separately in TurboTax.

[numanuma]

Do I have to fill out everything again out just the  amount in Part III Box 2.  Filling out everything again doubles up the  tax burden because the amounts are entered twice but only received once. 

[numanuma]

Do I have to fill out everything again out just the  amount in Part III Box 2.  Filling out everything again doubles up the  tax burden because the amounts are entered twice but only received once. 

[numanuma]

My form doesn't indicate what part of the $ amounts is attributed to box 1 or box 2 . and the code on  section 199A is 20Z1 ... (Z1 = Box 1?)  There is no other Section 199A code 

[PatriciaV]

Enter all the information from Part I and Part II of the K-1 on both copies. Include all information from Part III on the first copy - except for the amount in Box 2. The second copy should have only the amount in Box 2 from Part III.

For Section 199A, look for a separate Statement A that may have the information you need. Enter this only for the first K-1, unless the QBI information is broken down by activity.

[numanuma]

Thank you for that clarification! I have been getting conflicting info on filling out the K3 portion.  I'm not sure if I have to or not. Everything I have seen on the internet references  people running the PTP not us mere shareholders.  I've read that there are big penalties for not filling out that info, I have read there are parameters  ( foreign income,  foreign business dealings, etc...)  that  makes it either necessary or unnecessary for tax payers to fill it out... and I can't make heads or tails of the IRS directions.