The QBI deductions are not done until you get all the way through the Schedule C. Nothing will calculate until the very end of the self-employment/Business income entry screens. There are a few questions you must answer in the software to trigger the QBI deduction and those questions do not come until the end of the interview. I will include instructions below so you can get to and answer these questions so your deduction gets calculated.
And as far as the K-1 is concerned, the QBI deductibility is determined at the entity level. If there are QBI related amounts in Box 20, the deduction will automatically calculate. But not every business qualifies for the deduction so these special codes must be entered by the preparer of the 1065 and K-1 form. TurboTax does not know if the K-1 issuing partnership qualifies or not, so if no codes, no deduction. To calculate your Schedule C deduction:
Type sch c in the search bar, click enter, then use the Jump to sch c link to get to the Schedule C entry area. Click Edit next to the business you need to apply the deduction for.
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In Home & Biz, scroll all the way down and hit the Continue button. You will start the QBI questions, see attached.
- In TurboTax Online, scroll down to Business Summary and click on Details next to Qualified Business Income, see the 2nd image attached.
