How do I enter qualified business income (QBI) from a K-1 into TT? I found no way to do so and I could not override the QBI simple or QBI deduction summary forms?

[Ed267]

There were no questions asked by TT when I entered the K-1 information regarding QBI.

[DanielV01]

It depends on whether the K-1 is coming from an S-Corp or a Partnership?  What entity did you receive the K-1 from?

[Ed267]

The K-1 is from a Partnership. Thanks

[DanielV01 · Accepted solution]

On TurboTax, you will enter the K-1 information into the Schedule E screen.  (To access, type "Schedule E"  in the Search box and click on the Jump to Schedule E link).  You will proceed to enter the K-1 information as you see it on your K-1.  The most important information for the QBI calculation is found in box 20.  You must enter the codes Z, AA, AB, and AC (or as many of these codes as you have), or QBI will not calculate.  If your K-1 does not contain these codes, you will need to have the K-1s corrected to include this information.

After you have entered all of the information, you will need to answer a couple of questions regarding the nature of the income and your expected income.  If you qualify, QBI calculates after that.

One caveat:  when using TurboTax Online, these calculations are not as visible as when you use TurboTax Desktop.  While not required, you may wish to purchase Desktop software and finish the return there.  The Forms Mode available in TurboTax Desktop is advantageous to seeing the QBI calculation.  If you wish to go this route, this FAQ gives information on how to do so:  https://ttlc.intuit.com/replies/3302260

[sjlocke]

"You will proceed to enter the K-1 information as you see it on your K-1."

When I jumped to "Schedule E", TT Deluxe shows me a page that says "Income from Rentals or Royalty Property You Own".

Neither of those is applicable to the business income I am trying to enter.  So, where does income from an S-corp on a K-1 get marked as QBI?

[Bphon2378]

I have the same question as sjlocke

You will proceed to enter the K-1 information as you see it on your K-1."

When I jumped to "Schedule E", TT Deluxe shows me a page that says "Income from Rentals or Royalty Property You Own".

Neither of those is applicable to the business income I am trying to enter. So, where does income from an S-corp on a K-1 get marked as QBI?

I have a partnership and in the partnership return I put I qualify QBI, it said basically you would have to mark it on your personal return.  So now I have a K-1, which I entered but where does this K-1 get marked as QBI? I dont see an option and I'm not getting any credit for it.

[DaveF1006]

It would be reported in Box 17 Code V Section 199A Information on your K1.

[Bphon2378]

I appreciate the response I was looking at my last year’s tax return on TurboTax business for corporations and in the K1 under 17  (Z code) it had my amount listed for QBI. This year the business corporation K-1 is not populating the amount when I elect the QBI. I don’t know if TurboTax needs to do an update to the business corporations or no.  I did not change anything and I attempted to redo my taxes and it’s still not populating.  So my K-1 is not reflecting the QBI from the corporation PARTNERSHIP return that is why it’s not showing up on K1 thus I cannot enter an amount in my personal tax return to take the deduction. 

[sjlocke]

That didn't actually answer the question. 

The correct answer is, once you have entered in all the information for the "Income" and "Deductions" sections, and you hit continue, ... and continue, .... eventually you will get to a "Qualified Business Income Deduction" under the "other" section.  That is where the questions about QBI are that will trigger the V code for the income.

Note, that the code W for wages paid is STILL NOT populating the K-1 form.

[Pabbo]

I entered my K1 info under:  "Personal Income; Business Investment and Estate/Trust Income; Schedule K-1"

QBI shows as $0 on 8895 and QBI Component worksheet.

Do I also have to enter the K-1 info a second time by jumping to Schedule E?  - or should I have entered it on Schedule E instead of entering as I did?

[DianeC958]

No you do not need to enter the K-1 information a second time.  

From what you described you have entered the K-1 information in the correct place in TurboTax.

@Pabbo

[Pabbo]

Thanks DianeC958.  

Is it normal (okay?) to manually update Ordinary Business Income and W-2 Wages (from K-1, Box 20) on the K-1 Form in TurboTax Home & Business?

Background:

Although I entered 3 numbers from my K-1 box 20, I noticed in "Forms"  that the only number from Box 20 that was coming through in Section D1 was Code AB, UBIA.  No 20% deduction was being calculated or applied.  code Z, Ordinary Business Income and code AA, W-2 Wages were not flowing through to the Form.

After manually entering the Ordinary Business Income and W-2 Wages in Section D1 on the K-1 Form, a Schedule E was automatically created and the 20% deduction was applied.

[DaveF1006]

After i read this, i logged into my sample test return to see if you had the ability to enter information into Box 20 of the return. Since the boxes were a light brown color, then it is perfectly acceptable to enter a manual update. Manual updates are not always available on the forms and can cause problems when attempting to electronically file. 

[Bphon2378]

You guys haven't answered squat.  Why do you even post? Just to get a positive review. The fact is QBI is not being calculated. If you select "YES" to the question if you'd like to take the QBI deduction, it's should calculate it accordingly.  They say the fix is coming 2/20/20, which is today and it's not here. I shouldn't have to manually put in anything. I paid $120 for this crap program.

[0q548di]

so true  -  TT is terrible this year.