SELF-EMPLOYMENT EARNINGS (LOSS) - Box 20 contains "Z - STMT" Section 199A

Forum|Forum|3 years ago
February 18, 2023
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I have a single Schedule K-1 for a LLC I participate in. Box 20 contains "Z - STMT". The corresponding 199A contains the following four line items:

ORDINARY INCOME (LOSS)
SELF-EMPLOYMENT EARNINGS (LOSS)
W-2 WAGES
UNADJUSTED BASIS OF ASSETS

In TurboTax, I have selected code Z for box 20 to trigger the "We need some information about your 199A income" screen. I have entered the values from my 199A for W-2 WAGES and UNADJUSTED BASIS OF ASSETS in the appropriate boxes.

Here is my question: I enter the from my 199A for ORDINARY INCOME (LOSS), however I do not know if i should enter the SELF-EMPLOYMENT EARNINGS (LOSS) noted in the 199A in the Other income (Loss) section below the Ordinary Business income tab? These values on my 199A exactly match the values in Box 1 and Box 14a on my K-1. It is unclear to me if I need to enter these values on the "We need some information about your 199A income" screen or if the values are automatically pulled by TurboTax from Box 1 and 14a.

Regards

Best answer by AliciaP1

No, you only enter the line items that TurboTax prompts. "Self-Employment earnings" is not business income to the business and is not considered in the QBI deduction. You only need to report the Ordinary Income (loss), W-2 Wages, and Unadjusted Basis of Assets (UBIA).

When you entered the K-1 box information, the self-employment earnings were reported correctly in box 14.

@laptoenail

mglauner

Yes, you should enter both the Ordinary Income and Self-Employment Earnings shown on your K-1. They represent different things, though they can be the same amount.

The Self Employment Earnings will trigger self-employment tax on Schedule C.

Here's more info on Ordinary Income/Self-Employment on K-1.

laptoenailAuthor

Thank you very much. Just to be clear, I would enter the Ordinary income in the Ordinary Business income line and the Self-Employemt Earnings in the other income line. Please note that information on the attachment indicates for a S copr but it very similar to what is being shown on my desktop version for a LLC.