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Can we have a QBI deduction when we are retired and don't and never have owned a business? Where did this deduction come from?

 
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3 Replies
CassLO
Intuit Alumni

Can we have a QBI deduction when we are retired and don't and never have owned a business? Where did this deduction come from?

You may see the following forms in Turbo Tax relating to the QBI deduction:

  • Form 8995 or 8995-A
  • Qualified Business Income Component Worksheet
  • Qualified Business Income Deduction Summary

You can delete these forms by following these steps:

TurboTax Online

  1. While in your return, click on Tax Tools > Tools (in the black bar at the side of your screen).  
  2. In the Tools Center, under Other helpful links click on Delete a form.
  3. Click Delete next to the form you want to delete and follow the onscreen instructions. 
  4. Once you have finished deleting the desired form(s) click the Continue with My Return box (in the lower right of your screen).

Please see the TurboTax FAQ's below for more information:

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Anonymous
Not applicable

Can we have a QBI deduction when we are retired and don't and never have owned a business? Where did this deduction come from?

Please See https://www.irs.gov/pub/irs-drop/n-19-07.pdf

 

From the above link, "Congress enacted section 199A to provide a deduction to non-corporate
taxpayers of up to 20 percent of the taxpayer’s qualified business income from each of
the taxpayer’s qualified trades or businesses, including those operated through a
partnership, S corporation, or sole proprietorship, as well as a deduction of up to 20
percent of aggregate qualified real estate investment trust (REIT) dividends and
qualified publicly traded partnership income.

 

So, if you received a 1099-DIV with an amount in Box 5 as the dividends from a REIT, it can be included in the business income deduction calculation.  Also, if you have a1099-MISC income with an amount in box 7 (non-employee compensation) with a Schedule C, that too would be included in the Qualified calculation. 

 

Check your 1099-Div or 1099-MISC for the dollar amount Turbo Tax has listed.  If you find a match, that is where the QBI is coming from

 

I hope this helps.

DavidS127
Expert Alumni

Can we have a QBI deduction when we are retired and don't and never have owned a business? Where did this deduction come from?

As pointed out by Community user ThinkQuick, you can get the Qualified Business Income (QBI) deduction even if you don't personally run a business, because the QBI deduction also applies to things other than income from businesses you run personally.  

 

Eligible taxpayers to deduct up to 20 percent of their 1099-DIV box 5 Section 199A dividends, qualified real estate investment trust (REIT) dividends, and qualified publicly traded partnership (PTP) income

 

You do not enter this deduction, it is automatically calculated by TurboTax based on your other entries, so you should be able to find one of the above types of income entered in your tax return from a 1099-DIV or a Schedule K-1.

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