Thank you for your reply.
In reviewing my 2019 tax return completed by TT Premier last year I see that there was no Qualified Business Income deduction entered on line 10 of form 1040. I also see that TT did not prepare form 8995.
In the IRS instructions for form 8995 found here in the paragraph that begins with "
Determining if items included on Schedule K-1 are included in QBI" it states:
To figure if the item of income, gain, deduction, or loss is included in QBI, you must look to how it’s reported on your federal income tax return. For example, ordinary business income or loss is generally included in QBI if it was used in computing your taxable income
As you know we are to compute the Qualified Business Income Deduction starting with Qualified Business Income. I am the sole employee of my S Corp LLC business. Last year I completed the Schedule K1 for my business using TT Business and that Schedule K1 applied to me, the lone shareholder. I must have missed the part of the TT interview that covers the section "Section D1 Qualified Business Income Deduction - Statement A Information" of Schedule K1, as I see in that section the "Shareholder’s share of QBI or qualified PTP items subject to shareholder-specific determinations:" was not completed.
I'm not going to go through the time and expense of figuring out why and redoing last year's tax return, however, for completing the 2020 returns I would like to know what entries I should be looking out for while working through the TT Business desktop app that will result in this Schedule K1 Section D section being complete because, like last year, I most certainly will have qualified business income and a level of taxable income below the threshold limit which together should then provide to me the 20% income deduction.
Can you please advise and thank you again for your time and patience.
Gary
