It doesn't appear that the QBI component amount is calculating correctly on the QBI Component Worksheet. On Line 11, the SSTB reduction to QBI is calculated using the reduction ratio. This reduces the QBI consistent with the $100,000 phaseout. Then the Tentative QBI component is calculated on the reduced QBI. Finally, the QBI component is reduced again by the reduction ratio. In effect, the QBI component is multiplied twice by the reduction ratio. This does not seem to be correct.
I compared the TurboTax QBI Schedule A with the IRS Form 8995-A. They don't look alike. The IRS form multiplies QBI x 20% on Line 3. On Line 25, you multiply the reduction ratio (same as calculated in TurboTax) x the number on Line 3. Since my QBI deduction is smaller than the income limitation, my deduction is the Line 3 deduction less Line 25, the phase-in reduction.
In a nutshell, TurboTax is reducing the QBI component by the reduction ratio twice and the IRS form only reduces it once. Have I entered something incorrectly? Please advise.
