topic Section 199A Dividends from ETF and QBI in Get your taxes done using TurboTax

Section 199A Dividends from ETF and QBI

128TCD — Wed, 26 Feb 2020 21:17:07 GMT

My broker's 1099-B lists 199A Dividends from a Vanguard ETF (VTI). Turbo Tax calculated a Qualified Business Income (QBI) deduction as a result and included that result on my 1040 form. I am not a business owner, so am I allowed to include this deduction on my personal return? Or am I allowed this QBI as it refers to the businesses within the Vanguard ETF?

Re: Section 199A Dividends from ETF and QBI

KurtL1 — Wed, 26 Feb 2020 21:44:34 GMT

You are allowed to receive the Qualified Business Income deductions on the Section 199 Dividends you received. See box 5 on the 1099-DIV you received from Vanguard.

Re: Section 199A Dividends from ETF and QBI

Anonymous — Wed, 26 Feb 2020 22:02:22 GMT

199A dividends are not QBI. however, Congress in passing that section of the law wrote that 199A dividends are eligible to be included as a component in computing the QBI deduction.

so yes 199A dividends are entitled to the 20% QBI education even though it's not QBI.

hope you don't have income from publically traded partnerships. there just like 199A dividends. but worse since losses allowed offset the 199A dividends reducing the QBI deduction where as if they throw off income your QBI deduction is increased.