When will turbotax have the input from section 199a corrected so it does not trigger a business expense?

Turbotax is picking up interest income off of section 199A as a business expense, even though it is coming from a mutual fund. This is a HUGE issue. I cannot file my taxes (state or federal) without doing an upgrade to the business version of Turbotax at a higher cost. This IS NOT A BUSINESS EXPENSE! I do not have a business and I have had the same mutual fund for a few years and neverhad this problem. I understand that there have been others with the same problem that have also contacted my broker. PLEASE HELP!

305

Expert Alumni

Mar 2, 2021 10:01:04 AM

I am not sure whether you are referring to preparing your 2020 Federal 1040 tax return or some other kind of tax return. Please clarify.

It is possible that the Qualified Business Income Deduction is generated from income items that are investment income.

The Qualified Business Income Deduction can be generated from one of two components.

The QBI component can result from a sole proprietorship, partnership, S corporation, trust or estate. The first component would likely be reported on Schedule C, Schedule E, Schedule F or a K-1.
The REIT / PTP component can be generated from qualified real estate investment trust (REIT) dividends or qualified publicly traded partnership (PTP) income. The second component could be reported on 1099-DIV or a K-1.

Is the Qualified Business Income Deduction what you are referring to? Does your tax return include one of the income components listed above?

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When will turbotax have the input from section 199a corrected so it does not trigger a business expense?