QBI Deduction on Idaho form43 not working correctly

Forum|Forum|2 months ago
April 16, 2026
1 reply
569 views

I own rental property in Idaho, but I'm a resident of Oregon. I need to file ID state form 43 for non residents. When I get to the section that asks about QBI deduction in turbo tax desktop, the application incorrectly shows the federal amount as $0 and doesn't allow me to change this. I've already filled out the federal return and it appears to correctly generate form 899A (1) which shows a federal QBI of $6082 on line 39. I don't understand why the ID state version of turbo tax doesn't recognize the federal QBI amount and why it doesn't allow me to edit this field. I can't edit this field in form mode either. It insists this "federal amount" (of QBI) is 0, but it is not. I think this is a bug. See screenshot below. For clarity, my only business income is from rental properties.

DawnC

Level 15

Is the source of the QBI the ID rental property? Do you have other QBI sourced income on your return? What is on line 13a on your federal 1040?

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stevelindsay541Author

Level 2

Thank you for responding. The source of my QBI income is 7 rental properties, six of which are in Idaho (the other in Oregon). This is the vast bulk of my QBI income. After looking at form 1995A, it looks like I also have $20 of section 199A REIT dividend income which came from a 1099-DIV that I received. I have no other sources of QBI income. Line 13a of my 1040 is $6082.

DaveF1006

Level 15

Here are some steps to look for to ensure you are receiving the QBI deduction in your Idaho return.

1. The "Rental Election" Check

Idaho follows federal rules for QBI, but the software needs to confirm that your Idaho rentals meet the IRS Safe Harbor requirements (or qualify as a Section 162 trade or business).

Go back to the Federal "Wages & Income" section.
Review each of your 6 Idaho rental properties.
Ensure the box is checked stating that this property is a "Qualified Business Income" entity. If this isn't checked in the Federal section, it won't flow to Idaho.

2. Check the "Business Activity" Links

In the Idaho state interview, there is usually a screen that asks you to "Identify the source of your QBI."

If the $6,082 from your Federal Form 8995-A is showing as $0 in Idaho, check if the software has categorized your rental income as "Passive" without a business designation.
Idaho Form 43, Line 28 (where QBI usually sits) specifically looks at the Idaho-source portion of that deduction.

3. The "Forms Mode" Workaround (Desktop Version)

Since you are using the Desktop version,

Open Form 8995 or 8995-A in the Federal Forms list. Ensure it is fully populated.
Open the "Idaho Information Worksheet." Look for a section labeled "Qualified Business Income" or "QBI Component."
Sometimes, you have to enter the Idaho-source income manually on a supporting worksheet before it will populate the actual Form 43.

If it is still stuck, right-click the $0 field and select "Override" (though use this as a last resort, as it can prevent e-filing in some states).

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