topic Re: QBI deduction error in Get your taxes done using TurboTax

QBI deduction error

PlzGiveMePatience — Wed, 12 Feb 2025 19:45:26 GMT

My husband has about $5 in box 5 of a 1099-DIV identified as 199A, which apparently triggered the QBI deduction. However, that deduction is $93, which seems wrong in view that the only basis is that $5. What’s wrong?

Re: QBI deduction error

MayaD — Wed, 12 Feb 2025 19:51:50 GMT

Did you receive Schedule K1?

Income from a partnership, S corporation, or trust reported on Schedule K-1 are generally eligible for the QBI deduction.

Qualified Business Income (QBI) deduction?

Re: QBI deduction error

PlzGiveMePatience — Wed, 12 Feb 2025 20:49:11 GMT

No, none of those. I’ve spelunked everything like that. The absolute only thing that seems relevant are the elements of the $5 under the 1099-DIV in box 5.

Re: QBI deduction error

KrisD15 — Wed, 12 Feb 2025 20:51:48 GMT

To clarify, no business income, and no carry-over from 2023?

Re: QBI deduction error

PlzGiveMePatience — Wed, 12 Feb 2025 21:00:17 GMT

Right. I wouldn’t have come on here with the issue if I had identified any of those—I did my research and looked at everything possibly relevant. There is no other basis for it besides that $5 on the 1099-DIV.

Andrea

Re: QBI deduction error

SteamTrain — Wed, 12 Feb 2025 21:03:00 GMT

Did you actually edit that 1099-DIV to make sure only $5 was in that box?

Occasionally the decimal point is missed, or a comma entered by mistake, resulting in the box showing $500 or $5000 instead...AFTER you left that page the first time you entered it.

Re: QBI deduction error

PlzGiveMePatience — Wed, 12 Feb 2025 21:08:28 GMT

{sigh} YES YES YES. I checked EVERYTHING. It states

Re: QBI deduction error

PlzGiveMePatience — Wed, 12 Feb 2025 21:33:21 GMT

Still no solution. It looks like TurboTax goofed.

Re: QBI deduction error

SteamTrain — Wed, 12 Feb 2025 21:51:11 GMT

@PlzGiveMePatience

See if you can print out the Form 8995.

The details of what went into it all, to give you that $93 should be on that form.

Re: QBI deduction error

PlzGiveMePatience — Wed, 12 Feb 2025 22:17:56 GMT

You’re right. It is on that form. But I don’t see how it gets there. The form reports (line 28) “Qualified REIT dividends and publicly traded partnership (PTP) income of $465. I can’t see anything that shows that and clicking on the amount doesn’t take me anywhere.

Re: QBI deduction error

SteamTrain — Wed, 12 Feb 2025 22:25:24 GMT

(line 28?....line 8?)

Nothing on line 7?

all on Line 6?

Re: QBI deduction error

SteamTrain — Wed, 12 Feb 2025 22:40:06 GMT

If you are sure, you didn't get any $$ from a PTP, on a form K-1..

Then you need to go back to the Interest and dividends section and Edit every 1099-DIV you find there to see what's in each one.

Or...last resort....

1) delete every 1099-DIV you find there...

2) Then check to see if anything remains on the Form 8995 on lines 6 or 8.

3) Then re-enter every 1099-DIV again Manually, don't import, don't upload picture or PDF file. Just enter every one manually using each paper copy of a 1099-DIV you have in your possession.

Re: QBI deduction error

PlzGiveMePatience — Thu, 13 Feb 2025 14:04:28 GMT

OK. I found the basis for the $465 amount in the computation. Comes from Section 199A dividends, combining both mine and my husband’s VG 1099-DIVs. So the $93 deduction now makes sense.

THANK YOU for sending me to scrutinize the DIV reports. The $5.63 was the 199A dividends only on my husband’s DIV, all the rest of the $465 were on my DIV, which I hadn’t considered, since it had appeared the system was still considering that he was a consultant as he had been last year. So my oversight in having those blinders on. Thanks again.