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After you file
You have a couple of separate questions regarding the REIT dividends. I'll try to answer them separately:
- Does a deduction apply to REIT dividends? It can, yes. Although not considered to be QBI itself, REIT dividends are included with QBI for the Section 199A deduction. Even if you have no separate business, they can be considered for the deduction.
- Can it be calculated in TTDeluxe (online)? You can always start using TurboTax Deluxe. It is possible that if the dividends are the only Section 199A eligible income you are reporting, that an upgrade is not necessary. If it is necessary to upgrade to report the dividends and get the deduction, TurboTax will advise you if you will need to use TurboTax Premier or not. On the other hand, you may use any version of TurboTax Desktop software for QBI calculations (and Forms Mode in desktop software allows you to see where QBI goes on the return).
- Where is it entered? You will report it with the remaining information on your Form 1099-DIV. Type "1099-DIV" and then the "Jump to" link provided. On the 1099-DIV form, you will see limited selections of boxes, so you will click the checkbox "My form has info in more than just these boxes (this is uncommon)". Then you will enter the box 5 information. You will later be asked some questions to ensure that this income qualifies for Section 199A deduction on your return.
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‎June 6, 2019
12:36 AM