I would have to believe Intuit is keenly aware of the issue given the number of similar questions I have already seen. While I realize the the law that brought about the QBI deduction was signed into law in December, it is now mid-February and for the life of me I cannot understand why the issue has not been fixed, but yet it works fine for Sch C. January is one thing, but come on, mid-February and still no fix? For many years I have depended on Turbo for my taxes, but without knowing what is being done to fix the problem, or even if the problem is being addressed, is very aggravating to say the least. I either play the waiting game, buy a competing tax software or hire a CPA to finish my taxes for me.
It depends. The QBI calculation is working in the program, but there are key entries that must be made for the program to include the income qualifying for the deduction. For example, if you received a K-1 from a partnership, it is imperative that in the Partnership return, the Box 20 Code Z information was reported and distributed, and that this information was entered into TurboTax in the personal return from the partner's individual K-1. these codes must be on there. Otherwise QBI won't calculate.
It depends. The QBI calculation is working in the program, but there are key entries that must be made for the program to include the income qualifying for the deduction. For example, if you received a K-1 from a partnership, it is imperative that in the Partnership return, the Box 20 Code Z information was reported and distributed, and that this information was entered into TurboTax in the personal return from the partner's individual K-1. these codes must be on there. Otherwise QBI won't calculate.
I actually found through looking at other questions and answers that by using the key combination of control + D allowed me to unlock the fields on the QBI worksheet to enter the missing numbers that the Step-By-Step functions are not yet set up for K1 income and then the calculations worked correctly and the deduction worked exactly the way it should have and Turbo carried the deduction correctly to the 1040. So in summary I got Turbo to calculate the deduction somewhat manually, but accurately. But I am still very disappointed in the Turbo product. If I was not a technical person and an accountant in one I don't know if I would have figured out this backdoor per se.
Upon completing the K1 for my Sub-S (from form 1120S), I note that section D1 does not automatically populate to arrive at the QBI. Why?
Regards,
Ron
@RonSP It appears as if Forms 8995 and 8995-A are still in draft mode and the relevant TurboTax component (probably as a result of the aforementioned) is not yet fully functional.
It is not carrying forward S-corporation Income to QBI. Is there specific sections that need to be filled force this condition. Last year I had to force by putting Section K-1 Box 17 Code V. But it did work last week on the 2019 version, but it is not working anymore. Is there a different code for this year?
I'm glad to see this isn't just me. I can't get my QBI to show up on my 1040, even after entering the amount from the Sch K-1 for code V.
Turbotax Business also isn't putting the Box 17 code W for W-2 Wages on the K-1.
@sjlocke wrote:Turbotax Business also isn't putting the Box 17 code W for W-2 Wages on the K-1.
With respect to code W see See (starting on page 37) https://www.irs.gov/pub/irs-pdf/i1120s.pdf
Same problem. Worked last week but not today. I think it is a result of the latest update. Also, the 2018 K-1 had Code V and W but 2019 only has Code V. Turbo Tax will probably get this fixed eventually (last year it did not work until March).
@JohnH68 wrote:
....the 2018 K-1 had Code V and W but 2019 only has Code V.
Code W is no longer utilized for the 2019 tax year.
Was this issue fixed and will it work correctly for 2019 taxes?
As of this post the specific QBI forms are still not available for 2019 taxes so I presume this thread was about 2018 taxes.
If there are still certain values that must appear for the QBI to calculate can you share all of those potential gotcha's?
With respect to 2019 taxes, Schedule K-1 1120S, my question question was "why Section D1 was not automatically populated when the data was entered into Part III. Manual entry of data from Part III allows a calculation of QBI which flows into the Form 1040 deduction.
@ericinmaryland wrote:
Was this issue fixed and will it work correctly for 2019 taxes?
As of this post the specific QBI forms are still not available for 2019 taxes so I presume this thread was about 2018 taxes.
Part of the thread concerns the 2018 tax year and, clearly, the latter part concerns 2019.
The forms availability table can be viewed at the link below.
I am totally hung up. Can you tell me what number is supposed to go in Box 20, Code Z?
@kmthie wrote:
I am totally hung up. Can you tell me what number is supposed to go in Box 20, Code Z?
Did you receive a statement (or ancillary document) with your K-1?
Hello
Trying to file my personal 2018 tax return and Having the issue with the K1 form not being accepted. There is an option to override and submit anyways. Is there an issue in doing that?
More information about your situation may help diagnose your issue. For example, what message are you getting and what kind of K-1 are you trying to enter (i.e., partnership, S Corp, trust).
Also, as you are preparing a 2018, you must use the Download/CD version of TurboTax. If you haven't already, update the software using the menu at the top (Online>>Check for updates).