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Question

K1 Taxes

Forum|Forum|1 year ago
April 4, 2025
1 reply
0 views

I have filed the appropriate K1 taxes for my personal income taxes this year. My two questions are as follows:

1) My company said they would reimburse me for the federal and state taxes associated with the K1 taxes. Is that reimbursement tax free since it's an expense that I paid for out of my own pocket originally?

2) My accountant did the Qualified Business Income (QBI) deduction based on section 199 code V. Is there any issue with that approach as long as the K1 has the section 199 code V?

Not A Product Question

(1) If the company will reimburse you for those expenses, do not claim the expenses at the screen Describe the Partnership / I am required to pay ....

(2) For IRS Schedule K-1 (1065), at the screen Enter Box 20 info, select code Z Section 199A information. A value does not have to be entered. Then click Continue.

At the screen We need some information about your 199A income, click the box to the left of the item to be entered. An entry box will open. You may be entering:

Ordinary business income (loss) from this business,
W-2 wages for this business, and
UBIA of qualified property for this business.

Enter these values for the qualified business income deduction to be calculated.

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