Investors & landlords

As pointed out by Community user Carl, you should properly report all your income and expenses on your tax return, including for your rental properties.

As to the question of why your incomplete Schedules E showing income results in lower taxes that the properly completed Schedules E, more information may help resolve your issue.  For example, do your rental properties have "suspended" passive losses from prior years that carryforward to 2019, and if so, are those suspended passive losses also treated as QBI carryforward losses on line 29 of your Federal Carryover Worksheet?  And, what amounts are reported on your Form 1040 line 10 for the QBI deduction and Schedule 1 Part I line 5 for the rental income (loss) and Form 8582 when you properly prepare your Schedules E versus when you report inaccurate expenses? 

Also, note that the 250 hours referred to by Community user Carl is related to the "safe harbor" for a rental property to qualify for QBI.  You don't get a specific question about 250 hours in TurboTax, you get a screen that asks "Do you want to use a safe harbor to qualify this property for a deduction?".  The 250 hours is an an element of that safe harbor.

See the IRS article on the rental real estate safe harbor at this link for an overview of the safe harbor requirements.  I've pasted a summary of those here:

"The following requirements must be met by taxpayers or RPEs to qualify for this safe harbor:

• Separate books and records are maintained to reflect income and expenses for each rental real estate enterprise.
• For rental real estate enterprises that have been in existence less than four years, 250 or more hours of rental services are performed per year. For other rental real estate enterprises, 250 or more hours of rental services are performed in at least three of the past five years.
• The taxpayer maintains contemporaneous records, including time reports, logs, or similar documents, regarding the following: hours of all services performed; description of all services performed; dates on which such services were performed; and who performed the services.
• The taxpayer or RPE attaches a statement to the return filed for the tax year(s) the safe harbor is relied upon."

More details are about "rental services" are in the IRS Revenue Procedure 2019-38 section .04 Rental Services. on page 7 of the PDF at this link, including what qualifies as rental services and what doesn't, and making clear that rental services performed by a management company "count".