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Solved

What is Qualified Business Income Deduction? I have an S corp and 20% of my K-1 is a lot, but my QBI deduction is only $30. Isnt it supposed to be a direct 20% of K-1?

Forum|Forum|5 years ago
September 7, 2020
5 replies
27 views

I am MFJ with an income threshold below the one specified for QBI

TurboTax Self Employed Online

Best answer by Anonymous_

There is a decent summary on the IRS web site at the link below.

https://www.irs.gov/newsroom/qualified-business-income-deduction

Anonymous_Answer

Level 15

There is a decent summary on the IRS web site at the link below.

https://www.irs.gov/newsroom/qualified-business-income-deduction

Level 15

Does your K-1 have a code Z in box 20 ?

And TT has worksheets for everything ... save a PDF with the worksheets to see how the QBI is being calculated ...

click in the left menu column on TAX TOOLS, then PRINT CENTER.
Then choose "Print, save, view this year's return."
The next screen should offer some options: "Just my tax returns", or "include government worksheets (optional)", or "include government and TurboTax worksheets (optional.)"
See if one of those PDFs has what you need. The latter has the most pages.

Level 15

Or a code V in Box 17 for an S corporation (K-1 1120-S).

A

Anonymous

you may also want to review form 8995/8995-A which is the IRS form for computing the overall QBI deduction once QBI for each trade or business id calculated from the separate worksheets.

Level 15

One thing I found was my QBI credit was not as much as I thought it would be. Because I had a business loss the prior year and it carried it over and took it into account.