topic QBI Deduction not calculating in Get your taxes done using TurboTax

QBI Deduction not calculating

impala1995ss — Fri, 27 Mar 2020 20:36:41 GMT

Hello,

On my personal return, I have rental income on Sch E and it's not calculating the QBI deduction even after selecting "yes" to the question. Line 10 on my 1040 is blank. I looked at the Turbo Tax Smart Worksheet for Sch E (see attached pic) and the box where it would qualify for safe harbor is not checked. How do I check that box? I presume this is the reason it's not calculating the QBI deduction. I'm well under the income threshold for 2019.

Other items on my return include the following (if it makes a difference):

Small W2 income (unrelated to sch E)
401k Rollover (tax free)
Roth IRA conversion (taxable)
Sch D Capital loss
Sch A expenses
Dividends

Help!

Re: QBI Deduction not calculating

DavidS127 — Fri, 27 Mar 2020 20:59:02 GMT

Try to go back through the Step-by-Step interview for each Schedule E, and you will see a screen requesting Business name and EIN enter the name you are using for the rental property in the box for Business name. You don't need to enter anything in the EIN box.

You can do this in TurboTax Download/CD in Forms mode on the QBI Component form for each Schedule E by entering the name you are using for the rental property in the first box, "aggregate trade or business name".

Re: QBI Deduction not calculating

impala1995ss — Fri, 27 Mar 2020 21:30:30 GMT

That worked, thank you! I knew it had to be simple. I called support TWICE and they were clueless.

Re: QBI Deduction not calculating

TaxMan47 — Fri, 27 Mar 2020 21:40:28 GMT

I'm having this same problem but for a Schedule-K.

Re: QBI Deduction not calculating

impala1995ss — Fri, 27 Mar 2020 22:44:53 GMT

Hello, while researching my issue, I came across this post that might have the answer to your K-1 problem. It's a couple pages long but may be worth the read.

https://ttlc.intuit.com/community/taxes/discussion/qbi-not-calculating/01/1009926

Re: QBI Deduction not calculating

DavidS127 — Sat, 28 Mar 2020 12:12:07 GMT

When you enter a Schedule K-1 form you received from a business with QBI, make sure you have entered all the information on the Statement or STMT that came with the K-1 you received. That Statement or STMT will be associated with box 17 code V, and should be designated as "Section 199A" information.

To enter your box 17 code V information properly, Continue through the K-1 interview after you have entered your code V for box 17. You don't actually have to enter an amount on that box 17 screen, it doesn't "feed" any calculation. 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 17 code V information to be correctly input into TurboTax.

Here is a screenshot of the screen you are looking for:

And, depending on what is reported on your K-1 statement, you may need the next screen as well:

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.

@TaxMan47

Re: QBI Deduction not calculating

SwampYankee — Sun, 31 Jan 2021 01:10:58 GMT

The software will not do it automatically and does not work. You need to go to the forms page for schedule C and click on the box that you are qualified for the QBI. Do not listen to ANYONE who says it does it automatically. It has not since the 20% was instituted. Are these people working for the IRS and trying to get you to overpay?

Re: QBI Deduction not calculating

jtkbau — Sat, 22 Feb 2025 01:31:15 GMT

I have a sole proprietorship in a service business. My profit this year is very small ($5000). The program is not calculating the QBI deduction, although it always has in years past. Is it because the profit is so low?

Re: QBI Deduction not calculating

DawnC — Sat, 22 Feb 2025 01:57:56 GMT

No, you can get QBI as long as you have a profitable business. The deduction amount depends on your total taxable income, which includes wages, interest, capital gains (etc.) in addition to income generated by the business. How much is your taxable income; it is on line 15 of Form 1040.

If your taxable income is less than $191,950 ($383,900 if filing jointly) - the deduction is 20% of QBI or taxable income minus capital gains and dividends (whichever is less) to come up with the deduction. So, if you don't have taxable income, you won't get the deduction.

Did you already go through the interview screens and answer the QBI questions? If not, go back to the Schedule C interview. After you enter your income and expenses, click on Continue - - and the QBI questions appear. @jtkbau

Re: QBI Deduction not calculating

jtkbau — Sat, 22 Feb 2025 02:39:30 GMT

Taxable is $213,585 (filing jointly). Yes I have gone through the business interview screens again and answered yes to the qbi questions. The deduction still does not show in the summaries.

Re: QBI Deduction not calculating

SwampYankee — Sat, 22 Feb 2025 02:58:45 GMT

Leave Easy Edit and go into the actual forms. You should be able to manually check off the QBI deduction on the form. If it is already checked, you should be getting the deduction. I have not downloaded their next version of nightmare software so I am not sure if this is a repeating problem from previous years.

Re: QBI Deduction not calculating

DaveF1006 — Sat, 22 Feb 2025 15:30:50 GMT

To look at this in detail and to report a possible product defect, we would like to see a diagnostic copy of your return. The information in this file is a sanitized copy meaning there is no personal information, only numbers so that we can troubleshoot in depth, check for calculation issues, and to see how certain items are applied. Here is how to order.

For Turbo Tax online, go to tax tools>tools>share my file with agent. When this is selected, you will receive a token number. Respond back in this thread and tell us what that token number is.

If you use the desktop version, go to the black stripe at the top of the program, click on online, and then select send tax file to agent. Let us know what the token number is.

Re: QBI Deduction not calculating

jtkbau — Sun, 23 Feb 2025 00:48:50 GMT

93258291-73656262

Re: QBI Deduction not calculating

DaveF1006 — Sun, 23 Feb 2025 15:16:34 GMT

I reviewed your file and I discovered why you weren't receiving a QBI deduction.

Your net income for the business was $5955, which is reported on line 10 of your Schedule 1.
Your health insurance premiums for the year are not reported as expenses as part of the $5955 calculation. They are accounted for separately on line 17 of Schedule 1.
Additionally, $421 is reported on Line 15 of Schedule 1, which is the deductible part of self-employment tax.
Even though the health insurance premiums and the deductible part of self employment tax are accounted for separately, they are still considered part of the calculation of QBI.

Now your qualified income for QBI considerations is.

Income for the year $5995

Minus Health Premiums - 5534

Deductible SE Tax - 421

You had no taxable income for the year to claim QBI. To test to see if the program worked correctly, I removed one of the health insurance premiums entries you paid during the year and when i did that, a small amount of QBI appeared in your return on Line 13 of the 1040.

@jtkbau

QBI Deduction not calculating

maggy7 — Tue, 03 Mar 2026 02:37:13 GMT

I believe I meet the requirements for QBI but it is not being calculated. Is there a glitch? How can I get help? I tried deleting my property (airbnb) and adding it again, it did not fix it.

Re: QBI Deduction not calculating

JamesG1 — Tue, 03 Mar 2026 03:17:22 GMT

Is there a entry on line 13a of the IRS form 1040? If the Qualified Business Income Deduction is $0, does the property report a net income?

Does the tax return contain an IRS form 8995 or IRS form 8995-A? If the tax return does contain this form, is the rental property income listed under line 1?

What income or loss is reported? Please clarify.

@maggy7

Re: QBI Deduction not calculating

maggy7 — Tue, 03 Mar 2026 03:24:53 GMT

13a says 0.

Property has an approximate net $4600 income.

No Form 8995.

Airbnb income, expenses include maintenance/repairs/real estate tax/mortgage interest/misc/property depreciation.

Re: QBI Deduction not calculating

Mike9241 — Tue, 03 Mar 2026 04:11:57 GMT

TurboTax generlly assume an activity does not qualify for QBI, so there is a check box to say it does. it reads something like a qualified business under 199A. In addition, certain info must be entered in the QBI section of the TurboTax form