For a partnership Schedule K-1, you would look on line 20 of the partner's K-1 schedule and see a code Z if there was QBI reported. For an S Corporation Schedule k-1 you would look on line 17 and see code V. Both of them would then have supporting schedules.
Thank you, yes I do have a Code V however when I'm uploading my Schedule K1 onto Turbo tax, if i try to do it without code V, or try it by inserting Code V, it doesnt change my federal tax due, so I am questioning whether I'm actually getting the deduction or not, since with or without it makes no difference
Does your K1 show a loss for the year? If you have a loss then you can't take the QBI deduction.
no. my ordinary busines income is 171,000 and i have a statement A showing ordinary business income and then wages
When you view the Federal 1040 income tax return, is there a qualified business income deduction reflected on line 13?
The computation of the qualified business income deduction is found on IRS form 8995 or 8995-A. The form should list the K-1 information on the lines 1i through 1v.
No, it says 0.
Might I also add that my form 8995-A is completely blank.
Might I also add that my form 8995-A is completely blank.
When you enter the K-1, and include Code V from Box 17, you will be asked follow-up questions a few screens later. Did you complete these questions? You will be asked to enter the qualified business income components. See images below.
Look for Form 8995 or 8995-A (you may have more than one) in your tax return - this is where you will see how TurboTax calculated the amount.
The deduction amount depends on the taxpayer's total taxable income, which includes wages, interest, capital gains (etc.) in addition to income generated by the business. Once the taxable income reaches or exceeds $191,950 ($383,900 if filing jointly), the type of business also comes into play. From this very detailed TurboTax FAQ