My trust received a Form 1099 from a brokerage firm which included 199A dividend income. I entered this information into TurboTax Business and received a message that said the trust didn't qualify for the QBI deduction which I have filed successfully in the past through a CPA-prepared return. Yet all online sources affirm such dividends do qualify for QBI. The trust's total income is approximately $30K. Why did TurboTax Business say my trust didn't qualify for QBI and include a Form 8995 for filing?
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Trusts are eligible for the QBI deduction.
If form 8995 is generated by TurboTax, this means that the QBI deduction has been calculated.
Looking at the Forms In My Return, no Form 8995 was prepared. As I noted, TurboTax Business (TTB) sent a specific note saying that "no QBI deduction was due". Given my brokerage account entry for 199A dividends and past qualification of those same source dividends (e.g., real estate index funds) in previous CPA-filed return, I don't understand why TTB didn't qualify those dividends for QBI deduction. Is there another way to enter those 199A dividends to qualify for QBI or is there a possible glitch in the TTB program?
The trust is not eligible for the QBI deduction but can pass the opportunity to the beneficiaries when the income is distributed to them. It will be reported on the Schedule K-1 with the distribution information.
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