it doesn't. The QBI deduction is taken at the shareholder level. once you enter the k-1 info in Turbotax there will be additional questions about QBI. The shareholder/taxpayer gets the QBI based on business income (lines 1,2, and 3 and possibly other lines like 751 recapture. distributions of S-Corp profits are irrelevant. The deduction is computed of form 8995 or 8995-A.
