I received a notice from IRS saying I made an error on the QBI deduction. TurboTax Calculated the QBI deduction differently than IRS. IRS took my AGI on line 7, Form 1040 and deducted the standard deduction of 12,000. Then they multiplied that result by 20% and inserted that on line 9 on the 1040 form as the QBI deduction. Turbotax came up with the QBI deduction by taking my Schedule C, line 31 profit and deducting 1/2 self employment tax from the profit. Then that result was multiplied by 20% and inserted into line 9 on Form 1040.
Now I owe hundreds of dollars and interest to the IRS. Intuit: What do you have to say about this? Who made the error? Please explain.
