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April 7, 2025
Question

When entering multiple K1s forms for Part III for Box 1/2/3 do you skip the Code Z

  • April 7, 2025
  • 1 reply
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When entering multiple K1s forms for Part III for Box 1/2/3 do you skip the Code Z in Box 20 question for the second and third K1  Turbotax forms. 

    1 reply

    April 7, 2025

    [Edited 04/09/25 | 7:23 pm PST]

    @Peter1899 

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    Peter1899Author
    April 8, 2025

    There is only one  20Z1 ( Box 1? ) and there is no 20Z2. When  populating the  second K1 for the Box 2 do you reuse the 20Z1? 

    April 9, 2025

    Sorry for being unclear.

     

    At the screen Choose Type of Activity, click This K-1 reports in more than one of boxes 1,2, and 3.

     

    Since your K-1 reports amounts in more than one of boxes 1, 2, or 3, the partnership/LLC is involved in more than one type of activity.  You should treat each activity separately in TurboTax.

     

    So there will be one K-1 entry for box 1 income.  Only click on box 1 and the statement "This K-1...".

     

    There will be a second K-1 entry for box 2 income.  Only click on box 2 and the statement "This K-1...".

     

    Each of these K-1 entries will have its own Box 20 to report Z - Section 199A information.

     

    The preparer of the K-1 may have included attachments or detail which explain how the section 199A information is broken down for box 1 and box 2.  

     

    Ideally, the original K-1 and the attachment provided by the preparer of the K-1 would look something like this.

     

    Original K-1                                                         Box 1 only                                                           Box 2 only

     

    Box 1     $1,000                   =                             $1,000

    Box 2     $500                      =                                                                                                            $500

    Box 5     $100                      =                             $75                                                                         $25

    Box 6a   $200                      =                             $150                                                                       $50

    Box 6b   $100                      =                             $75                                                                         $25

    W-2 wages $50,000            =                            $25,000                                                                 $25,000

    UBIA $100,000                    =                             $50,000                                                                 $50,000

     

    @Peter1899 

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