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rabbit1
Level 1

QBI Component worksheet?

i'm stuck at the QBI component work sheet. My husband business and my business are showing up and looks like i need to enter explanation statement. 

What am i supposed to enter? 

We havea rental property as well, but for the rental property the work sheet came up saparately. 

1 Best answer

Accepted Solutions
DavidS127
Expert Alumni

QBI Component worksheet?

It sounds like you and your husband's businesses are being "aggregated" on the same QBI Component worksheet, i.e., treated as a single business for qualified business income (QBI) deduction purposes. If so, you will see both your Schedule C businesses listed under Business Name in the table just below where an explanation is being requested.

 

If you do want to aggregate these Schedule C businesses, enter a brief description of the business enterprise, and explain why it meets the IRS aggregation rules at this link:

  1. You or a group of persons directly or indirectly own 50% or more of each trade or business for a majority of the tax year, including the last day of the tax year, and all trades or businesses use the same tax year end;

  2. None of the trades or businesses are an SSTB; and

  3. The trades or businesses meet at least two of the following factors:

  • They provide products, property, or services that are the same or that are customarily offered together.
  • They share facilities or share significant centralized business elements such as personnel, accounting, legal, manufacturing, purchasing, human resources, or information technology resources.
  • They are operated in coordination with, or reliance upon, one or more of the businesses in the aggregated group.

If you do not want to aggregate these Schedule C businesses, here is how to “un-aggregate” them in TurboTax Online: 

  1. Go to Delete a Form: In the left menu, select the dropdown arrow next to Tax Tools and then under that select Tools; in the pop-up window Tool Center, choose Delete a form.
  2. Find the QBI Component form for the aggregated businesses.  Delete that QBI Component sheet.
  3. Now, go to Review and start the review routine.
  4. You will have an error for each business that no longer has a QBI Component form.  For each of those businesses, you will see the Schedule C form for that business. It will be highlighted for Question A in the Qualified Business Income Deduction Smart Worksheet.
  5. Double click in the highlighted Question A box, and you will get a pop-up asking you to link to a QBI component worksheet.  Create a new copy for that business (e.g., give it the name of that business).
  6. Continue until you have created a separate QBI component worksheet for each Schedule C you do not want to aggregate.
  7. If in TurboTax Online you do not get the highlighted Question A box, go back through the interview questions for each Schedule C and TurboTax will create a new QBI Component worksheet for that business.

If you are using a Download/CD version of TurboTax, you can use Forms mode to delete the QBI Component worksheet, and then find that Question A box in the Qualified Business Income Deduction Smart Worksheet below line 48 on the Schedule C form.  Use the QuickZoom button or double-click the box to link your Schedule C to its "own" QBI Component worksheet.

 

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4 Replies
DavidS127
Expert Alumni

QBI Component worksheet?

It sounds like you and your husband's businesses are being "aggregated" on the same QBI Component worksheet, i.e., treated as a single business for qualified business income (QBI) deduction purposes. If so, you will see both your Schedule C businesses listed under Business Name in the table just below where an explanation is being requested.

 

If you do want to aggregate these Schedule C businesses, enter a brief description of the business enterprise, and explain why it meets the IRS aggregation rules at this link:

  1. You or a group of persons directly or indirectly own 50% or more of each trade or business for a majority of the tax year, including the last day of the tax year, and all trades or businesses use the same tax year end;

  2. None of the trades or businesses are an SSTB; and

  3. The trades or businesses meet at least two of the following factors:

  • They provide products, property, or services that are the same or that are customarily offered together.
  • They share facilities or share significant centralized business elements such as personnel, accounting, legal, manufacturing, purchasing, human resources, or information technology resources.
  • They are operated in coordination with, or reliance upon, one or more of the businesses in the aggregated group.

If you do not want to aggregate these Schedule C businesses, here is how to “un-aggregate” them in TurboTax Online: 

  1. Go to Delete a Form: In the left menu, select the dropdown arrow next to Tax Tools and then under that select Tools; in the pop-up window Tool Center, choose Delete a form.
  2. Find the QBI Component form for the aggregated businesses.  Delete that QBI Component sheet.
  3. Now, go to Review and start the review routine.
  4. You will have an error for each business that no longer has a QBI Component form.  For each of those businesses, you will see the Schedule C form for that business. It will be highlighted for Question A in the Qualified Business Income Deduction Smart Worksheet.
  5. Double click in the highlighted Question A box, and you will get a pop-up asking you to link to a QBI component worksheet.  Create a new copy for that business (e.g., give it the name of that business).
  6. Continue until you have created a separate QBI component worksheet for each Schedule C you do not want to aggregate.
  7. If in TurboTax Online you do not get the highlighted Question A box, go back through the interview questions for each Schedule C and TurboTax will create a new QBI Component worksheet for that business.

If you are using a Download/CD version of TurboTax, you can use Forms mode to delete the QBI Component worksheet, and then find that Question A box in the Qualified Business Income Deduction Smart Worksheet below line 48 on the Schedule C form.  Use the QuickZoom button or double-click the box to link your Schedule C to its "own" QBI Component worksheet.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
rabbit1
Level 1

QBI Component worksheet?

Do you think a bookkeeping business consider as SSTB?

ThomasM125
Expert Alumni

QBI Component worksheet?

Accounting is clearly a profession that would be considered a specified service trade or business (SSTB). Bookkeeping is a component of accounting services, so one would think it would be considered as SSTB. However, the IRS has specifically labelled it as such.

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drdeputy1
New Member

QBI Component worksheet?

I am not trying to combine these two functions how did I get here

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