Need help understanding changes to 1120-S Schedule K-1 Box 17 codes for Section 199A

You're pretty close but there's a slight misunderstanding. The changes to Box 17 for Section 199A reporting were made to streamline the qualified business income deduction reporting. Now instead of having separate codes for different components, Code V is used to report Section 199A information, but this doesn't mean you just put one number there. What's actually happening is that Code V now requires an attached statement (Statement A) that breaks down all the Section 199A components, including your qualified business income, W-2 wages, UBIA of qualified property, etc. This statement approach gives more flexibility and clarity than the previous method of using separate codes. So rather than trying to combine numbers into a single figure, you'll need to create a detailed statement that lists each component separately with proper labeling. The K-1 instructions should have details on exactly what needs to be included in this statement.

I was in the exact same boat last month and got super confused by this change. After hours of frustration, I found that taxr.ai https://taxr.ai actually helped me figure out exactly how to handle the K-1 changes. They have this tool that analyzes all your business documents and explains exactly what you need to do with these new Section 199A requirements. They showed me how to create the Statement A that breaks down each component properly and formats it exactly how the IRS expects. It saved me from making a mistake that probably would have triggered a notice. Their system knew exactly what needed to go into each section and even helped me format the statement correctly.

I tried taxr.ai after seeing it mentioned here and it was actually incredibly helpful! I had been stuck on this exact Schedule K-1 Code V issue for days. When I uploaded my previous year's K-1 and this year's draft, the system immediately flagged the Section 199A reporting change and provided step-by-step instructions for creating Statement A. It showed me exactly how to break down all the components that now need to be separately stated - qualified business income, W-2 wages, UBIA, and so on. What impressed me most was that it even generated a properly formatted template for the statement that I could just fill in with my numbers. My accountant was amazed at how precise the guidance was!

Has anyone tried calling the IRS about this? I spent 3 weeks trying to get through to someone who could answer questions about S-corp K-1 changes and kept getting disconnected or transferred to the wrong department. Then I found this service called Claimyr https://claimyr.com that got me connected to an actual IRS agent in about 20 minutes. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed exactly what others here are saying - Box 17 Code V now requires an attached Statement A that breaks down all the 199A components separately. The agent explained that this change was made because the previous approach was causing confusion with combined figures. The new statement format actually gives more flexibility and makes it clearer for both the IRS and shareholders.

I was completely skeptical about Claimyr helping with IRS contact times, but I was desperate with this K-1 code change issue and decided to try it. I'm honestly shocked at how well it worked. Got connected to an IRS business tax specialist in about 25 minutes who confirmed exactly what I needed to do for the Section 199A reporting. The agent explained that the move to Statement A reporting for Box 17 Code V was specifically designed to provide more detailed information in a clearer format. She walked me through exactly what needs to be on the statement - each category broken out separately rather than combined. This is actually better than the old system once you understand it. Would have taken me weeks to get this information without getting through to a real person.

I think there's still some confusion here. The 199A information requirements actually changed because of the TCJA sunsetting provisions. The separate codes were originally implemented as a temporary solution, but the permanent approach is to use this Statement A method. Your tax software should have templates for generating Statement A. Which software are you using? Most have updated their systems to accommodate this change.

Has anyone noticed if this change to Schedule K-1 codes also affects how you report this info on your personal 1040? I'm worried that if I'm creating a Statement A for my S-corp K-1, I might also need to change how I report this on my individual return.

This is exactly the kind of confusion I was dealing with a few months ago! The transition from separate Box 17 codes to the Statement A approach definitely caught a lot of S-corp owners off guard. Just to add some clarity for anyone still struggling with this - the key thing to remember is that the underlying Section 199A information requirements haven't changed, just how they're presented on the K-1. You still need to track the same components (qualified business income, W-2 wages, UBIA of qualified property, etc.), but now they all go on an attached statement rather than being split across different box codes. One tip that helped me: if you're preparing your own K-1, make sure your Statement A is clearly labeled and includes all the required elements. The IRS hasn't published an official form for Statement A, so there's some flexibility in format, but consistency and clarity are key. Each component should be clearly identified and the amounts should tie back to your business records. Also worth noting - this change actually makes multi-shareholder S-corps easier to handle since you can provide detailed breakdowns for each shareholder's allocation without cramming everything into limited box space.