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Level 2

Standard vs QBI Deduction

Hi – I am confused by the new QBI deduction.  I am a retired senior who owns a small farm where I grow grain. Another person and I share the cost of planting & growing the crop and then split the harvest.  My portion amounts to approx $15K profit on a gross income $37.6K which I report on Form 4835.  This year, TT is calculating my QBI deduction as approx. $3K and forcing me to take this amount plus my itemized deductions instead of the Standard MFJ $27K deduction.  Since my itemized deductions are very small, this is really hurting me.  Is there some way to elect using the standard deduction even though I may qualify for the QBI deduction?

 

Thanks in advance for any advice!

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Expert Alumni

Standard vs QBI Deduction

Both Kris and Critter are correct - you can take a QBI deduction with either the standard deduction or the itemized deductions.  Make sure you have completed the Personal Info section in TurboTax and that you have entered you and your spouse's information and your filing status is Married Filing Jointly.  Then use these instructions to choose the standard deduction.  Choose the TurboTax CD/Download instructions.  

 

Then go to Forms (in the upper-right corner) and look at your Form 1040 and see what the amount is on Line #9.   Your QBI deduction will be on Line #10 and the amount should be $3K no matter which deduction (standard or itemized) you have on LIne 9.  

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6 Replies
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Expert Alumni

Standard vs QBI Deduction

Yes. Choosing Itemized or the Standard Deduction has nothing to do with the Qualified Business Income Deduction. 

How you do it depends on whether you are using Desktop or Online 

 

How to switch between Standard and Itemized

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Level 15

Standard vs QBI Deduction

You seem very confused ... the QBI  is in ADDITION to EITHER the standard or itemized deduction NOT instead of and it cannot force you to take either deduction   .... return to the deductions and credits tab to choose the standard deduction instead.  

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Level 2

Standard vs QBI Deduction

Critter - I would LOVE for your reply to be correct!  However, TTP only calculates my QBI deduction plus my itemized deductions - about $17K versus the $27K standard deduction.  Try as I might, I am unable to find any way to force TT to use the Standard Deduction and QBI Deduction.  I have gone through the info worksheets with a fine tooth comb.  I would gladly forgo the QBI deduction for the Standard MFJ deduction by itself.  Any suggestions?

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Expert Alumni

Standard vs QBI Deduction

Both Kris and Critter are correct - you can take a QBI deduction with either the standard deduction or the itemized deductions.  Make sure you have completed the Personal Info section in TurboTax and that you have entered you and your spouse's information and your filing status is Married Filing Jointly.  Then use these instructions to choose the standard deduction.  Choose the TurboTax CD/Download instructions.  

 

Then go to Forms (in the upper-right corner) and look at your Form 1040 and see what the amount is on Line #9.   Your QBI deduction will be on Line #10 and the amount should be $3K no matter which deduction (standard or itemized) you have on LIne 9.  

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

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Level 15

Standard vs QBI Deduction

Once again the QBI has nothing to do with the itemized or standard deduction ... so call TT support where someone can actually look at your return and see your issue : 

 

Please use the following link to contact Customer Support for further assistance.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

 

How to change between the Standard Deduction and Itemized Deductions
https://ttlc.intuit.com/community/accessing/help/how-do-i-change-from-the-standard-deduction-to-item...

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Level 2

Standard vs QBI Deduction

Thanks to everyone for their help.  Your advice has resolved my problem.

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