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Get your taxes done using TurboTax

The Qualified Business Income Deduction is a computation that you have to calculate outside of TurboTax in order to enter these amounts.

 

Below is the formula:

 

The deduction is either A or B, whichever is less:

 

  • A = 50% of the business's W-2 wages paid (or 25% of the W-2 wages paid plus 2.5% of the business's unadjusted basis in all qualified property), whichever one is the greater amount
  • B = 20% of QBI

The return requires you to enter these deductions in the periods as illustrated in your screenshot. 

 

You will also need to review the guidance in the link below for a better understanding:

 

Qualified Business Income

 

@nickos007 

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