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Level 1

I have an S corp and Ive entered the income from form K-1 and yet I dont see any qualified business deduction when attempting to file my personal taxes for 2018. Why?

 
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Level 12

I have an S corp and Ive entered the income from form K-1 and yet I dont see any qualified business deduction when attempting to file my personal taxes for 2018. Why?

It is calculated through the interview.  For starters, the QBI calculation is complex, especially if the individual is above the 157,500 thresholds if single, married filing separately, or head of household, or 315,000 if Married Filing Joint.  But these are the steps needed to help the program calculate QBI correctly:

  1. Under Wages and Income, scroll down to the Subheading Business Income, and select K-1.  
  2. On the screen Choose Type of Activity select whether it is Business Income  or Rental Real Estate, (if business income, answer questions regarding your stock ownership and Material Participation, if rental real estate, answer the appropriate questions about being a Real Estate Professional, Active Participation, and Special Handling.)
  3. On the screen Check Boxes That Have an Amount, you should select Box 17 info.
  4. You should see codes V and W on the K-1 (if you do not, this is would be one reason why the QBI does not calculate.  This information must be on the K-1 for QBI to calculate).
  5. Select any that apply on the screen Other Situations, and any information to the question Did this business receive qualified payments from a cooperative.
  6. Answer the question about anticipated income on the next screen, We're almost done.  If anticipated income is below the threshold, QBI will calculate after that screen.  If above, you will provide additional information, and QBI will calculate according to the final results of the calculations.

You may find the following FAQ helpful:  https://ttlc.intuit.com/replies/7036528

2 Replies
Level 12

I have an S corp and Ive entered the income from form K-1 and yet I dont see any qualified business deduction when attempting to file my personal taxes for 2018. Why?

It is calculated through the interview.  For starters, the QBI calculation is complex, especially if the individual is above the 157,500 thresholds if single, married filing separately, or head of household, or 315,000 if Married Filing Joint.  But these are the steps needed to help the program calculate QBI correctly:

  1. Under Wages and Income, scroll down to the Subheading Business Income, and select K-1.  
  2. On the screen Choose Type of Activity select whether it is Business Income  or Rental Real Estate, (if business income, answer questions regarding your stock ownership and Material Participation, if rental real estate, answer the appropriate questions about being a Real Estate Professional, Active Participation, and Special Handling.)
  3. On the screen Check Boxes That Have an Amount, you should select Box 17 info.
  4. You should see codes V and W on the K-1 (if you do not, this is would be one reason why the QBI does not calculate.  This information must be on the K-1 for QBI to calculate).
  5. Select any that apply on the screen Other Situations, and any information to the question Did this business receive qualified payments from a cooperative.
  6. Answer the question about anticipated income on the next screen, We're almost done.  If anticipated income is below the threshold, QBI will calculate after that screen.  If above, you will provide additional information, and QBI will calculate according to the final results of the calculations.

You may find the following FAQ helpful:  https://ttlc.intuit.com/replies/7036528

Level 1

I have an S corp and Ive entered the income from form K-1 and yet I dont see any qualified business deduction when attempting to file my personal taxes for 2018. Why?

That Form K-1 is not yet finalized until 2/7/2019

You can check when that form is available and sign up to be notified at the link below:

https://ttlc.intuit.com/replies/3319876