topic Code AG for box 20 does not relate to the 199A deduction,... in Get your taxes done using TurboTax

I have k-1 income. Why am I not getting a 199a qualified business income deduction?

inquiring-mind — Tue, 04 Jun 2019 01:09:49 GMT

My husband and I have a business reporting as a partnership. Some answers here say they QBI deduction hasn't been implemented yet. How can we tell when it is available? Shouldn't that be posted somewhere? Or maybe it's functional now and I'm doing something wrong.

The 199A Qualified Business Income (QBI) deduction calcul...

JulieCo — Tue, 04 Jun 2019 01:09:51 GMT

The 199A Qualified Business Income (QBI) deduction calculation should be working, but note that it is done behind the scenes as there are many variables, plus three taxable income level thresholds, in the calculation. Therefore, if your K-1 (1065) form has an amount in box 20 with a code of one or more of Z to AC, those are the amount(s) that are needed for the QBI deduction calculation. This deduction will be calculated once all of your K-1 information is entered, meaning you must get entirely through the K-1 section for the calculation to trigger (as long as there are amounts in box 20 with the codes listed).

The 199A QBI deduction is reported on line 9 of your 1040 form. In TurboTax Home & Business, you can change to FORMS mode to see your 1040 form, plus the supplemental schedules that will show the 199A QBI deduction calculation.

Also, please note that at taxable income under the the lowest threshold level (under the threshold of personal taxable income of $157,000 single and $315,000 joint), the QBI is calculated as EITHER 20% of your qualified business income (which is self employed business profit less self employment taxes, self employed health insurance and/or self employed retirement, etc) OR 20% of your personal taxable income less capital gains/dividends, whichever is LESS.

Here is more information on the 199A QBI deduction:

https://ttlc.intuit.com/replies/7019998

Here are steps to switch to FORMS mode:

https://ttlc.intuit.com/replies/3339205

See the Box 20 codes for the 199A deduction for the 1065 K-1 in the attached screenshot below:

[Edited 2-19-19|4:11pm]

Thank you, Julie, for the speedy reply! The box 20 code i...

inquiring-mind — Tue, 04 Jun 2019 01:09:52 GMT

Thank you, Julie, for the speedy reply! The box 20 code is AG. I completed the entire K-1, but it did not trigger the worksheet. (I clicked on forms and it was blank -- didn't even have the name of my business.) What else could be the problem? Thank you in advance.

Code AG for box 20 does not relate to the 199A deduction,...

JulieCo — Tue, 04 Jun 2019 01:09:54 GMT

Code AG for box 20 does not relate to the 199A deduction, so that is why you are not receiving one on your return. The box 20 codes must be Z, AA, AB, AC or AD. See the screenshot of the K-1 codes I put will put in the answer above. You will need to go back to the preparer of your K-1 to see why the 199A codes were not put on it.

Re: The 199A Qualified Business Income (QBI) deduction calcul...

Taxflex — Thu, 30 Jan 2020 21:32:05 GMT

Hello,

Please, let me know how 199A form is working with K1 from S corp.

Thank you

Re: The 199A Qualified Business Income (QBI) deduction calcul...

owenh19 — Sun, 02 Feb 2020 20:16:52 GMT

I've entered data into the 199A Sum Wks, but it doesn't show up on Schedule K-1. All that shows up is code V * STMT, and there is no values and there is no Statement. Is this a known error and will be fixed?

Re: The 199A Qualified Business Income (QBI) deduction calcul...

MaryK4 — Mon, 03 Feb 2020 02:06:18 GMT

The IRS now requires a Form 8995 to calculate the QBI deduction. The IRS has not finalized the form and you cannot get the deduction without it. It is expected to be ready in a few weeks.

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

J LUIS CALLEJA — Wed, 12 Feb 2020 01:37:51 GMT

I HAVE $ 14500.00 ON PROPERTY TAX AND ONLY GET CREDIT FOR $ 10000.00 WHY

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

JamesG1 — Wed, 12 Feb 2020 01:54:43 GMT

IRS form 8995 will be available in TurboTax products February 20. Please see here.

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

Reebs — Fri, 14 Feb 2020 23:43:44 GMT

I am having the same problem with a K-1 from a Trust. Form 8995 is available in TurboTax currently. Line 9 on the QBI Deduction Summary does include 199a income from 1099-DIV, but not from K1s. However, the data source does show the amount that should be included. Spent hours with Support, but their solution was to override rather than fix the problem. I was told that 8995a is what is being released on the 20th, but that doesn't seem to be the issue where K1s are not included in the QBI Deduction Summary Form.

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

Reebs — Fri, 14 Feb 2020 23:46:40 GMT

I should mention that I am using TurboTax Deluxe Desktop for the PC

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

KrisD15 — Sat, 15 Feb 2020 03:48:38 GMT

What box is the income reported in on the K1?

Do you have taxable income without counting Capital Gains?

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

Reebs — Sat, 15 Feb 2020 18:38:51 GMT

Yes. The issue is not with any calculation only with transferring to the QBI Deduction Summary Form.

The K1 reports 199a on line 14 code "I". In Turbotax it will also show up in Section D2 Line I1 and line I3 of the Form for REIT Dividends. The number there should transfer from D2-I3 to Form QBI Deduction Summary Line 9 and it doesn't.

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

DaveF1006 — Sun, 16 Feb 2020 19:52:11 GMT

is your K1 from a partnership or S-corp?

Re: The 199A Qualified Business Income (QBI) deduction calcul...

47bobber — Sat, 22 Feb 2020 22:49:53 GMT

Part of your reply was "Therefore, if your K-1 (1065) form has an amount in box 20 with a code of one or more of Z to AC, those are the amount(s) that are needed for the QBI deduction calculation."

I am currently in TurboTax 2019 and the last allowed box is 17 when entering the K-1 data.

I am trying to understand why TurboTax calculated the 20% QBI for me in 2018, but not in 2019. My business structure remains unchanged and I am well under the income threshold.

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

Reebs — Thu, 27 Feb 2020 10:50:59 GMT

It is from an Trust K1. Just checked today after updating TurboTax Deluxe and the issue is still there. The QBI REIT Dividends are not added to the QBI Deduction Summary line 9 even though the data source for that line shows the REIT Dividend amount. Very frustrating.

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

pbhollinger — Sun, 01 Mar 2020 17:20:19 GMT

I have a K-1 Box 20 - Z amount, but Turbo Tax business is not transferring the amount to Form 8995. You can override the line on Form 8995, but then TTB won't let you e-file the return. Right now the only solution is to override and then file by mail.

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

DavidS127 — Mon, 02 Mar 2020 16:34:13 GMT

The issue with REIT Section 199A dividends reported on a trust Form 1041 Schedule K-1 is being worked on. I will update you when the issue has been resolved.

[Edited 03/02/2020|8:32am PST]

@pbhollinger

@Reebs

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

Reebs — Mon, 02 Mar 2020 22:42:18 GMT

Thank You! You are the first one to admit it was an issue and that it will be worked on. I am anxious to learn when it is fixed.

Re: I have k-1 income. Why am I not getting a 199a qualified business income deduction?

DavidS127 — Tue, 10 Mar 2020 15:30:32 GMT

For the Box 20 code Z issue, note that it is very important to Continue through the K-1 interview after you have entered your value for box 20 code Z. Enter the code Z when you enter the K-1, but you don't need to enter an amount. Continue on, and there is a screen near the end of the interview titled "We need some more information about your 199A income or loss". This screen must be completed in order for your box 20 code Z information to be correctly input into TurboTax.

To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.

@pbhollinger