Form 1065 line 20 Z and AJ

Forum|Forum|1 year ago
March 27, 2025
2 replies
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I am confused. There is an entry Z and says statement. I do not find any numbers to support the Z. There is also AJ but on the additional statement there are 2 entries. one is gross income and one is deductions. Do not know what to do with those numbers.

thanks

TurboTax Home & Biz Windows

ThomasM125

You would have to check with the issuer of the statement to be sure, but the gross income number would likely be the code Z entry for section 199A income. That is qualified business income that may give you a tax deduction. the code AJ would likely be the deduction for excess business profits. It may decrease the deduction of losses reported on the K-1 form. Put the amounts in the proper box 20 entry for Code Z and Code AJ.

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Jubbs116Author

There are two entries for AJ one is gross income and the other is total deductions. I use both or one or none? Z I don't see any 199A amount anywhere.

KeshaH

The issuer of the K-1 will need you to provide you with the 199A information. There's usually a separate, full page statement with the details needed.