How do I enter K-1 line 20 code AJ information?

Forum|Forum|2 years ago
February 20, 2024
2 replies
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Code AJ is not a choice for line 20 of the desktop K-1 input form. How do I enter Excess Business Loss Limitation information from my K-1 Partner?

Best answer by PatriciaV

The information reported on Schedule K-1 Box 20 Code AJ will be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return).

If that applies to you and you need to enter this manually, you will need to use Forms Mode (available only in the desktop versions of TurboTax). You may also need to manually complete the related Form 461.

See also:

@eshemesh

@Do_It_Myself

@Lalo86

PatriciaV

Employee

Schedule K-1 Box 20 Code AJ is new for tax year 2023. TurboTax has not released the updated forms for this year, which is why you are seeing an out-of-date K-1 in TurboTax for Desktop.

According to the Forms Availability Table, Schedule K-1 is expected to be released on February 21, 2024. Because updates are released after business hours Pacific time, we recommend that you wait until the next day to update TurboTax (if using the desktop version) then retry the K-1 entries.

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eshemeshAuthor

Patricia, thanks for your reply and, yes, the TT update included a K-1 line 20 code AJ selection. Unfortunately, the program does not provide further support for Excess Business Loss Limitation information, and I don't know what to do with it other than put it on line 20! The IRS articles are unclear about this.

PatriciaVAnswer

Employee

The information reported on Schedule K-1 Box 20 Code AJ will be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return).

See also:

@eshemesh

@Do_It_Myself

@Lalo86

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jeffm5

I see code AJ in the dropdown, so that's a good first step.

However on the K-1 I received, the value for code AJ consists of 2 line items in a supporting statement (similar code Z, which has a supporting statement with multiple line items). In TT I am eventually asked for and can enter the various components of code Z, but don't see where I can do so for code AJ.

As a separate question, if my aggregate losses are under the threshold, can I just leave the value for code AJ blank and move or will that cause a problem elsewhere?

PatriciaV

Employee

If your aggregate losses are under the threshold, you may skip entering Code AJ from your Schedule K-1.

@jeffm5

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Lalo86

After I subtract deductions from gross income I have a positive $1305 left in gross income between my wife and i’s schedule k-1’s. Do I still need to input code AJ or can I skip? @PatriciaV @GlemmaJ