How does TurboTax handle the 80% pass through from a Sub-S Corp?

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If you are referring to the QBI deduction (Section 199A), all of the income will be reported as being passed-through to you. Then, you are asked a series of questions to determine if you qualify for the deduction as an individual.

The S-Corp does not pass through 80%, but rather all of the income. It should be marked on the K-1 as qualifying income (through the entries on Box 17, with codes V, W, X, and Y, if they exist). Make sure that all of these codes are entered on your K-1 in the TurboTax K-1 entry screen.

Then, the deduction is calculated. It is complicated, so you might want to read the following FAQ that has additional information (click on the View the entire answer, and then the embedded link How is the deduction calculated? (Not for the faint of heart!): https://ttlc.intuit.com/replies/7019998

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