When entering business income for a separate Schedule C, I'm prompted to indicate whether the income is QBI -- and when I indicate that it is, TurboTax incorporates that in my QBI deduction amount. However, when I enter a K-1 that I received from a pass-through entity I own, I do not see this prompt nor any other way to indicate that income listed on my K-1 is QBI.
The QBI deduction for partnerships and S corps is not yet fully implemented. Check again when the next update is released.
Why is it that a whole year after the TCJA was passed TurboTax still hasn't implemented QBI for S corps? Is it because IRS has not given definitive guidelines/rules on how to deal with QBI deduction? How are we supposed to file 2018 without rules and without a functioning TurboTax?
It is 2020 and this option is not available on my Turbotax Home & Business anywhere I can find.
Any solution, suggestion, work around or update?
Forms 8995 and 8995-A, the forms used to to calculate the amount of Qualified Business Income Deduction (QBID), are not final yet. TurboTax will update the program after the IRS finalizes their instructions. After that update you should see the QBID on your tax return and you will be able to file.
For current information on forms availability, please click on this link: Federal forms availability