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Solved

How to add multiple passthrough entities to Box 20, Code Z 199 Info?

Forum|Forum|1 year ago
September 25, 2024
3 replies
0 views

I have a K1 with numerous passthrough entities generating the amounts listed in Box 20, CodeZ - 199A information. Turbotax seems to only allow one passthrough entity - how can I add multiple entities as generating the income/amounts that qualify for 199A QBI?

Best answer by Terri Lynn 11

Thanks for the question, mlemaire87!

First try to delete the K-1 with the incorrect information.

To delete an unwanted K-1 is from the K-1 Summary screen, which also removes the associated worksheets.

Open or continue your return in TurboTax.
Go tp the Wages and Income Section.
Select the Edit or update button next to the K- section.
Select Edit or update next to the type of K-1 you initially entered (partnership/LLC, S corp, or estate/trust).
On the K-1 Summary screen, select to Delete next to the K-1 you want to remove. Answer Yes are you sure you want to delete on the following screen.
Select Done.
If necessary, repeat steps 4–7 for other K-1s you need to remove.

Alternatively, if that does not eliminate the issue, you can delete the incorrect K-1 by following these steps:

On the menu bar on the left that shows: My Info, Federal, State, Review, File, Select Tax Tools.
On the drop-down select Tools
On the Pop-Up menu select Delete a Form
This will give you all of the forms in your return.
Scroll down to the form you want to delete.
Select the applicable K-1
Click on Delete.

Please feel free to reach backout with any additional questions or concerns you might have!

Have an amazing rest of your day!

Terri Lynn, EA

*Please say "Thanks," by clicking the thumbs up icon at the bottom of the post.
**Select the post that answers your question by clicking on "Mark as Best Answer.”

marctu

Multiple Qualified Business Income (QBI) entities reported on a single K-1 require that a separate K-1 be entered for each entity reporting QBI (Section 199A amounts). For each K-1, the Section 199A amounts associated with your Box 20 code Z are entered on the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens that follow (several screens after) the last "box" screen.

Because your K-1 is reporting Section 199A information generated by the partnership and Section 199A information generated by at least one additional "passthrough" entity, you'll need to enter separate K-1s for entry into TurboTax. Enter one K-1 with only the "box" amounts generated by the partnership, and an additional K-1(s) with only the "box" amounts generated by each separate passthrough entity.

Because your K-1 is reporting Section 199A information generated by the estate/trust and Section 199A information generated by at least one additional "passthrough" entity, you'll need to "split" this K-1 into separate K-1s for entry into TurboTax. Enter one K-1 with only the amounts generated by the partnership, and an additional K-1(s) with only the "box" amounts generated by each separate passthrough entity.

The Section 199A Statement you received for box 20 code I should already show the Section 199A amounts between the entities, so you enter the Section 199A amounts for each entity on the K-1 you've created for that entity.

Note that when you enter each K-1, you'll encounter the question "Does the Section 199A income (from Box 20) include business income from a business held by the partnership?". When you answer Yes, TurboTax will ask for the name and EIN of each pass-through entity.

After this, you'll get the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens to enter the amounts from the Section 199A Statement that came with your K-1.

Thank you for the opportunity to answer your questions @mlemaire87

All the best,

Marc T.

TurboTax Live Tax Expert

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

JandKit

Hi mlemaire87

You should have received a statement with the K-1. Those entries can be made after the Box 20 Entries are included.

Your box entry should include the Code Z entry with no correcponding number

Using the Stmt that accompanies your K-1, additional entries will be allowed based on the entries for box 20.

Those entries could include:

AG*

the attached statement will provide the additional information on the pages after the box 20 letters are enterred. No amounts should be enterred for those letters indicated with an *

Goodluck to you!

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mlemaire87Author

Thanks for the info.

Let's say I mistakenly entered the passthrough entity name and EIN on the Section 199A details page - every time I go in to delete the name and ID, Turbotax remembers it and keeps auto-filling it back in. Is there a way to hard delete that entity info that I entered mistakenly?

Terri Lynn 11Answer

Thanks for the question, mlemaire87!

First try to delete the K-1 with the incorrect information.

To delete an unwanted K-1 is from the K-1 Summary screen, which also removes the associated worksheets.

Open or continue your return in TurboTax.
Go tp the Wages and Income Section.
Select the Edit or update button next to the K- section.
Select Edit or update next to the type of K-1 you initially entered (partnership/LLC, S corp, or estate/trust).
On the K-1 Summary screen, select to Delete next to the K-1 you want to remove. Answer Yes are you sure you want to delete on the following screen.
Select Done.
If necessary, repeat steps 4–7 for other K-1s you need to remove.

Alternatively, if that does not eliminate the issue, you can delete the incorrect K-1 by following these steps:

On the menu bar on the left that shows: My Info, Federal, State, Review, File, Select Tax Tools.
On the drop-down select Tools
On the Pop-Up menu select Delete a Form
This will give you all of the forms in your return.
Scroll down to the form you want to delete.
Select the applicable K-1
Click on Delete.

Please feel free to reach backout with any additional questions or concerns you might have!

Have an amazing rest of your day!

Terri Lynn, EA

*Please say "Thanks," by clicking the thumbs up icon at the bottom of the post.
**Select the post that answers your question by clicking on "Mark as Best Answer.”

Terri Lynn

Terri Lynn 11

Hello and thanks for joining us mlemaire87!

To add multiple passthrough entities for your K-1, Box 20, code Z 199 info you will have to enter multiple K-1's for the single K-1 you actually received. You will first enter the initial K-1, which will include all the box 1-20 amounts related to that main partnership. You will then need to add an additional K-1 for each additional pass through entity that you need to enter the Box 20, Code Z, 199 info for.

For each additional K-1, you must use the same identifying information as used on the initial K-1 (e.g., name of partnership, address, EIN, etc) when you begin the K-1 entry.
As you enter each K-1, TurboTax will prompt you with the question "Is the business that produced the Section 199-A income a distinct business that is owned by the partnership?" TurboTax is asking if the Section 199-A income was passed through to the partnership sending you the K-1 by another partnership, S-Corp, or trust; versus being generated by the business operations of the partnership that sent you the K-1.
Keep in mind, that on the initial K-1, you will need to answer that it is from the partnership, and on the additional K-1's, you will enter that it is from the pass-through entity. TurboTax will ask for the name and EIN of each pass-through entity at that point.

Also worth noting, that when you enter the code Z on the box 20 screen, you do not enter an amount on that screen., instead Continue on, until you see the screen "We need some more information about your 199A income or loss".

For more information on K-1's see:

Please feel free to reach backout with any additional questions or concerns you might have!

Have an amazing rest of your day!

Terri Lynn, EA

*Please say "Thanks," by clicking the thumbs up icon at the bottom of the post.
**Select the post that answers your question by clicking on "Mark as Best Answer.”

Terri Lynn

jsonp

@Terri Lynn 11 Sorry i wan to clarify , the additiona k1 to report 20Z use the same EIN and name as Main K1? not the passthrough K1?

Example : Main K1, Company A EIN: 11-111111

Passthrough K1

- Company B, EIN : 22-222222

- Company C, EIN : 33-333333

When fill out additonal K1, do i leave everytrhing blank (ex: percentage owernship) except for 20Z

The main/initial K1 have no 199A info, do i check or uncheck this?

Also, instead of doing all these additional k1 , can i just add all them up and add to main K1 form?

ezreub

I have a similar issue here--with pass-through 199A information in addition to 199A information for the entity that sent the K-1. I understand I have to submit a second, separate K-1 for TT with the information for the pass-through under its own EIN. But what do I do about the boxes 1-20--before we get to the 199A information--when I submit the second K-1 for TT? Do I just repeat all the information in boxes 1, 5, 13, 17,18 and 20 that I used on the original K-1? Or do I somehow split the numbers in each of the boxes so that the total between the two K-1s add up to what is on the K-1 I received?