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Level 1
posted Feb 29, 2020 3:18:37 PM

How can I change the designation of an S corp from SSTB to non-SSTB? There is no way in the K-1 1120s dialog to make this choice. This affects my QBI deduction.

0 5 1868
5 Replies
Level 15
Feb 29, 2020 3:54:22 PM

That designation is made at the entity level; you cannot change it.

 

Whether or not you can take the deduction at your level depends upon your taxable income.

Level 1
Mar 3, 2020 10:41:09 PM

I'm sorry I don't understand your answer, but it doesn't address my question. The S corp that I work for is not an SSTB. However, TurboTax made the assumption that it is, thereby affecting my tax return negatively. I was not able to change that in TurboTax, even after consulting several people on this forum and one at TurboTax. I had to delete the entire K-1 and start over again. This time, for some odd reason TurboTax assumed it was not an SSTB, so that was a positive. Unfortunately it made another error when preparing the 8995-A form. It appears Intuit is still struggling to figure out the 8995 forms. I tried TaxSlayer, and they seems to have it in better shape.

Returning Member
Mar 10, 2020 7:06:46 PM

I am having the same SSTB designation issue but in a different way.  I am an SSTB but TurboTax, like you experienced, no longer even asks that question on the 2019 edition.  So when I switch to FORMS view, I see that SSTB is not checked off and I got a HUGE tax reduction that I am not supposed to get.  I called customer service but they were of no help

and was transferred to an automated queue that said I would receive a callback.  No callback in 36 hours now!  HUGE bug!

I can manually check off the box, but I should not have to.  Gives me 0 confidence that my taxes are being done correctly.

Level 2
Mar 11, 2020 1:10:44 PM

I can't manually check off the SSTB box.  How did you do that?  I'm not an SSTB.

Level 1
Mar 13, 2020 12:54:15 PM

I believe I started this thread. I eventually was able to fix the problem by deleting my K-1 in TurboTax, and re-entering it. Somehow, the second time around, TT must have assumed "not an SSTB", because the results were different.  However, there was still no question in the dialogue about SSTB.