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1120S k-1 qustion

Section 199A. where can I find the section 199A w-2 wages section 6051(a) (3) and (8) Im receiving this federal informational diagnostic under main form
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George4Tacks
Level 15
Section 199A W-2 Wages [O] 
Other Information                  Screen 27; Code 162

The program assumes that Deductions: “Salaries and wages” (Screen 15, code 34), COGS: “Cost of labor” (Screen 14, code 3), “Compensation of Officers” (Form 1120S, page 1, line 7), Farm Income: “Labor Hired” (Screen 18, code 17), RRE: “Wages and salaries” (Screen 21, code 15), and Other Rentals: “Wages and salaries” (Screen 22, code 15) represent Section 199A W-2 Wages. Section 199 W-2 Wages are included on the Schedule K, line 17d supporting statement and are allocated to the Schedule K-1 based on the shareholder's percentage of ownership. The entry in this field overrides the automatic calculation of Section 199 W-2 Wages.

NOTE: Special rules apply to the calculation of W-2 wages, and the amount of wage expense entered may not represent W-2 wages for this purpose.  For example, W-2 wages from Statutory Employees should not be included in Section 199A W-2 wages.   Refer to section 6051(a)(3) and (8) for more information.


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George4Tacks
Level 15
@profacct_taxserv Are you asking about finding the input or finding what number to enter?
What tax year are you doing?
Have you clicked on the diagnostic? Often that takes you to the input.
https://www.law.cornell.edu/uscode/text/26/6051 may help -

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George4Tacks
Level 15
Section 199A W-2 Wages [O] 
Other Information                  Screen 27; Code 162

The program assumes that Deductions: “Salaries and wages” (Screen 15, code 34), COGS: “Cost of labor” (Screen 14, code 3), “Compensation of Officers” (Form 1120S, page 1, line 7), Farm Income: “Labor Hired” (Screen 18, code 17), RRE: “Wages and salaries” (Screen 21, code 15), and Other Rentals: “Wages and salaries” (Screen 22, code 15) represent Section 199A W-2 Wages. Section 199 W-2 Wages are included on the Schedule K, line 17d supporting statement and are allocated to the Schedule K-1 based on the shareholder's percentage of ownership. The entry in this field overrides the automatic calculation of Section 199 W-2 Wages.

NOTE: Special rules apply to the calculation of W-2 wages, and the amount of wage expense entered may not represent W-2 wages for this purpose.  For example, W-2 wages from Statutory Employees should not be included in Section 199A W-2 wages.   Refer to section 6051(a)(3) and (8) for more information.


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