In 2018 how or where do I input the Section 199A amounts from my business K-1 (Line 17, V through Z) to calculate the Qualified Business Income Deduction on my 1040?

My K-1 has a note that "The Section 199A amounts to be used in the calculation of Qualified Busin4ess Income Deduction on your 1040/1041 return are reported on Line 17 under codes V, W, X, Y, and Z. When I input my K-1 data into Turbo Tax Home and Business - there are no relevant codes.

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1 Best answer

Expert Alumni

Jun 1, 2019 12:43:07 PM

It depends. 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:

Under Wages and Income, scroll down to the Subheading Business Income, and select K-1.
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.) It is also important that the income amounts themselves be reported in Box 1 or Box 2, depending on if it is Business Income or Rental Income.
On the screen Check Boxes That Have an Amount, you should select Box 17 info.
You should see codes V, W, X, Y and Z on the K-1 (if you do not, this is would be one reason why the QBI does not calculate. This information must be entered from the information on the K-1 for QBI to calculate).
Select any that apply on the screen Other Situations, and any information to the question Did this business receive qualified payments from a cooperative.
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

Expert Alumni

Jun 1, 2019 12:43:07 PM

Under Wages and Income, scroll down to the Subheading Business Income, and select K-1.
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.) It is also important that the income amounts themselves be reported in Box 1 or Box 2, depending on if it is Business Income or Rental Income.
On the screen Check Boxes That Have an Amount, you should select Box 17 info.
You should see codes V, W, X, Y and Z on the K-1 (if you do not, this is would be one reason why the QBI does not calculate. This information must be entered from the information on the K-1 for QBI to calculate).
Select any that apply on the screen Other Situations, and any information to the question Did this business receive qualified payments from a cooperative.
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

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In 2018 how or where do I input the Section 199A amounts from my business K-1 (Line 17, V through Z) to calculate the Qualified Business Income Deduction on my 1040?