K1 Box 13 Code ZZ deduction

Forum|Forum|2 years ago
March 28, 2024
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My Schedule K-1 (Form 1065) has Box 13 Code ZZ "Other deductions" with a dollar amount corresponding to the Pass-through entity tax (PTET) paid to Idaho. In the directions accompanying my K1, it states that the Box 13 Code ZZ dollar amount is supposed to be deducted from my taxable K-1 federal income (it is a non-passive deduction).

The amount that I entered on Schedule K-1 Box 13 Code ZZ is not populating in the Schedule E Page 2 worksheet, therefore it is not being subtracted from the total income being reported on the federal Schedule 1 Line 10 and ultimately on federal Form 1040 Line 8. Where or how do I enter this to allow for this amount to populate on the Schedule E Page 2?

Best answer by PatriciaV

Still wondering how the turbotax experts would recommend I enter it into the desktop windows version.

The steps listed by @kr07 are correct at this time, as the result follows IRS instructions. We are not expecting any further updates for K-1 entries before the end of tax season.

In TurboTax for Desktop, go to Forms Mode and open "K1P Addl Info" under the related K-1 Partner form. Scroll down to Line 13 Code WW to ZZ, line 6. Enter a custom description on the yellow line and the amount in the yellow box. Your entries here will appear on Schedule E page 2.

@utelax34

Mike9241

Turbotax bug which I assume they're working on 13ZZ and certain other items on box 13 (and other boxes) require additional info on a subform in Turbotax. The bug is they are not presented. (13D is working today but may require closing the return and reopening it to see the screens for the subentries that are needed) I have no idea when they'll fix the other boxes with this issue. I use desktop and skirt the issue by using forms mode and entering that additional info directly. Forms mode is not available in any of the online versions - self-only - not live prep

utelax34Author

@Mike9241 I am using the desktop version as well.

If I go to forms mode and select K1P Addl Info 1, can I go to subheading "Code W to ZZ: Other deductions" and manually enter it on line 6 "Other nonpassive deduction to be reported on Schedule E, page 2" ?

This seems to allow me to include a description of the nonpassive deduction (which I can manually add) and have it applied to Schedule E page 2. I am not sure however if this is the correct way to report this deduction?

kr07

Hi, I had the exact same issue. I went into Addl Info 1 and manually entered on line 6. It correctly populated on Schedule E, p2 and carried over to Schedule 1 as negative income and also to 1040. Turbotax is missing this option during the EasyStep so, until they fix it, this is a workaround. I hope this is the correct approach for now!