Where to specify S Corp K-1 income is from a SSTB?

[bgarner1]

Used to be a section when you entered K-1 income that asked questions about the business so that you could designate it as either SSTB or non-SSTB to receive the QBI deduction. Seems to now default to non-SSTB and can't find anywhere to designate the income as coming from a SSTB business. Any help would be greatly appreciated as TT product support doesn't have an answer.

[Anonymous_]

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@bgarner1 wrote:
Used to be a section when you entered K-1 income that asked questions about the business so that you could designate it as either SSTB or non-SSTB to receive the QBI deduction. 

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That designation will only appear if you check the "Yes" box as shown in the screenshot below.

[nancylin]

Where/when do you see that screenshot?  I have Turbotax Home & Business 2019 and I can't see it so far.  The only way that I can get the SSTB box to get checked is to switch over to the Forms view and manually check it off myself in the Statement A form in the K1 forms section.

[Anonymous_]

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@nancylin wrote:

Where/when do you see that screenshot?  

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Is your income over that threshold? If so, you will never see the screen depicted in the screenshot.

[nancylin]

Thanks.

Yes, the box 1 (physician practice S corp) income is well over the income threshold.

But since I never see that screen that is shown, when I switch over to forms view, I don't see the SSTB box checked.  This is for a physician practice, so it should be checked, right?  And since it is not checked, I am getting the huge deduction, which is great (LOL), but I don't think I am supposed to get ANY deduction at all.  I compared with the data and entries from my Turbotax 2018 (using 2018 data and the 2018 Turbotax edition), and the SSTB box last year was checked and I got no deduction then.  The turbotax interview has changed significantly from 2018 to 2019 and I am concerned that there is a bug in the 2019 software that is giving me the huge deduction.  Please advise if I am totally confused! Thanks!

[Anonymous_]

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@nancylin wrote:

Yes, the box 1 (physician practice S corp) income is well over the income threshold.

But since I never see that screen that is shown, when I switch over to forms view, I don't see the SSTB box checked. 

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This scenario is rather odd unless there is an entry on your K-1 on Line 17 (with a V code). If that is the case, however, it could indicate that whoever prepared the 1120-S might have made an error in not designating the income as derived from a SSTB.

[nancylin]

There is a V code on line 17.  
The hard copy 1120S is prepared correctly with the SSTB checked off by the practice’s accountant.

I am manually entering the data into Turbotax to generate a K1 1120S form, as this is a small practice and we don’t have a downloadable version.

I have been following all the prompts in the turbotax interview.  Never got asked the SSTB question all the way through to the end.  So my point is that on turbotax, even though I need the SSTB box to be checked, the interview never gives me the chance to do it.  I noticed the big tax difference and that is what made me go look on the forms view to see the 1120S that is populated by turbotax, as directed by my answers to the interview.  And that is where I see that the SSTB box is not checked off.  Is there something else I am missing? Thanks 

[Anonymous_ · Accepted solution]

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@nancylin wrote:

Is there something else I am missing?

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Perhaps you are not missing anything else (i.e., could be some sort of programming anomaly).

Regardless, I also have a copy of TurboTax Home & Business and, on a test return, I was able to enter Forms Mode and check "SSTB" directly on the K-1 (1120-S), which is located in Section D1.

[nancylin]

Thanks for trying it out on your end too.  It's just rather unsatisfying to know that I have to manually go to do that to get it to work.

[GK-2019-Tax]

My K-1 in line20 has the code Z which requires Section 199A Information

Info received:  Rental Income      Wages       Unadjusted Basis Asets

Statewide            2047                      569                 230

Passthrough       531                         173               5219

Willmott

Cannot find in Turbo where all this is entered so the possible deduction can be calculated.   I understand Section 199A Qualified Business Income Deduction instructions provide the ability to calculate it.  Do not have access to any additional information from the K-! prepared.   Assistance is appreciated so I can transmit my returns.

Gary K

[DavidS127]

Enter the code Z on the screen for the box 20 of that K-1, but you don't need to enter an amount.  Continue on, and there is a screen later in the interview titled "We need some more information about your 199A income or loss".  This screen must be completed in order for your box 20 code Z information to be correctly input into TurboTax.  The next screen after that is for less common Section 199A amounts.  When you click the box next to an item you need to report, a place will open up to enter your amount(s).

The UBIA item (last item on first screen) is for your Unadjusted Basis Assets amount.

More information about the "Statewide" vs "Pass-through" lines is needed to know whether or not those two amounts are added together for entry.

Here are screenshots of the screens you need to find:

To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.

@GK-2019-Tax