K-1 from 1065 line 20 showing Z* STMT

So, I fully agree that we should not override the info on the K-1.  However, my predicament is that in Box 20 - Code Z, it indicates "0".  The supplemental statement for the "subcodes" all indicate zero's.  Turbo Tax seems to question this figure.  I've tried to "trick" the system by typing in $0.001, but that doesn't work either.

  All of this said, I have already contacted the tax provider TWICE and they have confirmed that the figures are correct on my K-1.  That said, I'm fully expecting to be notified that an Amended K-1 will be forthcoming at some point.  (FYI, they checked the "K-3 Included" -Box 16- when the cover letter plainly states that they are NOT including a K-3 at this time.... oy veh!)

It is not Windows 7 problem, I have Windows 10. Here an answer I received from TurboTax. I don't like this solution, but for now I am going to do it as they suggested. I will inform my partner to enter code Z and code AB for line 20 when they file their personal tax return.

As we discussed, you were concerned that line 20 of your 2019 1065 K-1 did not have certain information listed as it did last year, but rather directs the partner to Statement A. On Statement A, the rental income of $5057 and the UBIA (unadjusted basis immediately after acquisition) of $62802 are reflected in the second column. 

If you go to the Forms view in your TurboTax program and pull up the K-1 form, you can right click on the line 20 box with STMT for additional information about that line. This pulls up the following regarding line 20 (I have underlined the pertinent information):

Schedule K-1 (Form 1065) 

The Schedule K-1 codes require that you identify the income, deduction, credit, or other type of amount on the Schedule K. This code along with the partner's share, will appear on the Schedule K-1. If the same code is entered more than once on the same line on the Schedule K, the Schedule K-1 will summarize the amounts and only display the code once. Also, the codes will be alphabetized on the Schedule K-1.

Schedule K-1 is a summary schedule identifying each partner's allocable share of income, deductions, gains, losses, credits, and other reportable items. This is a fully calculated form. However, because of the new IRS codes condensing certain lines, additional details are required to explain specific codes to the partners on their K-1s. To disclose those details, use the Supplemental Information Smart Worksheet at the bottom of Schedule K-1. You may also use the same smart worksheet to expand any other line detail you may choose.

In other words, the new IRS codes have caused your information to be reflected a little differently on this year's K-1. If you scroll down to the Supplemental Information Smart Worksheet, you can add the line 20 amounts of $5057 (code Z) and $62802 (code AB) with an explanation to the other partners as to how to reflect these amounts when entering their K-1 information into their personal return tax software. That way, your partners are informed and will not need to reach out to you for further clarification. 

I understand that this was confusing for you, and I'm glad that you reached out to us for assistance. I have informed my leads of the vagueness of Statement A for a possible flag for escalation, as we strive to continually improve our software.

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Thank you,

Yes, those Section 199A amounts go on your tax return.  Here's how:

Enter your code Z on the "box 20 screen".  You don't need to enter an amount on that box 20 screen, but you do need to click Continue after you have entered the code Z.   The next screen is "Describe the Partnership" and the the next screen is "We see you have Section 199A income" and then you should get to the screen you need to make your entries: "We need some information about your 199A income". When you check the box on the lines you need, other boxes will "open up" to enter the amounts from your Section 199A Statement/STMT.

Note that Unadjusted Basis of Assets amount goes on the "....has UBIA of qualified property" line.

To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.

Here is a screenshot of the "We need some information about your 199A income or loss"  screen where you enter the information from your K-1 Section 199A Statement/STMT:

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@fla_33801 wrote:

Where do I find the amount to put in Box 20Z from my K-1?

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You should have received some sort of supplemental statement along with your K-1.

If not, contact the individual or firm responsible for preparing the 1065.