Form 8995 is not right

[SmileTC]

Please tell me where are the questions to populate Form 8995. Currently my K1 entries are zero. I could just edit the form but I would prefer to see the questions. What section?

[DianeC958 · Accepted solution]

The section in TurboTax is Business Items, Schedule K-1,Q.  As you go through the information for the K-1 you received the form 8995 is created from information in box 17, Code V, if the K-1 is from an 1120-S, or box 20, Code Z.  

You should have a statement attached to you K-1 with information showing the amount of Ordinary/ Business Income, Rental Income, Royalty Income, Section 1231 gain/loss, Other Income, Section 179 deduction, Charitable Contributions, Other Deductions, W-2 Wages, UBIA of qualified property and Section 199A dividends.

You may not have an entry in all of these boxes.  The boxes that do not have entries leave the blank.

To claim the Qualified Business Deduction you need to have some income that qualifies.

[j13905]

I can take the UBI, but when I manually enter the figures on the 8995 it does update the 8995, but when I the check for errors TurboTax flags them and wants me to remove my entries.

[DavidS127]

You don't make the entries directly in the Form 8995 in TurboTax.  Instead, you enter your qualified business income amounts when you complete the TurboTax section for the source of the qualified business income.  The qualified business income (QBI) can come from a Schedule C self-employed business, Schedule E rental property, a Form 1099-DIV box 5, or a Schedule K-1 you received from a partnership, S Corp, or trust.

Enter that "source" first, and then follow the prompts in that section related to QBI or "Section 199A" information.  TurboTax will calculate your QBI and automatically populate the numbers on your Form 8995.

[SmileTC]

Thank you for your reply.  I did miss entering the code V for my K1 and that's what caused all the problems.  I appreciate your help. My taxes are filed and I'm getting a refund!

[jashealey]

TT is attaching a Form 8995 to my son's 1040 when it should be attaching a Schedule 1 for information input from a 1099-DIV. This is the first year I have seen this. Reading through the threads, he does have an amount in Box 5 of his 1099-DIV. Is this triggering the Form 8995? How do I get TT to delete the 8995 and attach a Schedule 1 (how do I get TT to complete the tax form correctly)?

[DianeC958]

Yes, it is the information on his 1099-Div, Box 5 that is triggering the form 8995.  Since he has information in Box 5 it is correct that his return includes form 8995.

If his dividend and interest income was less then $1500 a Schedule B is not required.

About Schedule B (Form 1040), Interest and Ordinary Dividends

@jashealey