topic 199A QBI Deduction in Deductions & credits

199A QBI Deduction

Tootallt004 — Fri, 07 Feb 2020 00:18:25 GMT

After entering REIT dividends from box 5 of 1099 DIV, TurboTax Deluxe created and filled in a Qualified Business Income Deduction Summary worksheet. This is now triggering the message: "If the only 199A income is REIT dividends from one or more 1099 DIVs and your taxable income is over the threshold for your filing status, then you cannot file your return at this time. This will be supported in a subsequent release."

What release? When? Do I need to upgrade to TurboTax Premier or will I get the same message?

Re: 199A QBI Deduction

VictoriaD75 — Fri, 07 Feb 2020 00:48:19 GMT

You are receiving dividends from a REIT (Real Estate Investment Trust), which qualifies for a Section 199A deduction. This does not mean you had Qualified Business Income (QBI), but you could qualify for the deduction. REIT dividends are reported on a Schedule K-1 or in box 5 of the 1099-DIV. This requires Form 8995-A, which is expected to be available on February 20, 2020.

Qualified Business Income Deduction

Forms Availability

Re: 199A QBI Deduction

PB11 — Sat, 08 Feb 2020 04:36:26 GMT

@VictoriaD75

>> This requires Form 8995-A, which is expected to be available on February 20, 2020.

Will the form be available on Feb 20 on IRS website, or in TT online? Can you please clarify?

Re: 199A QBI Deduction

ajamato — Sun, 09 Feb 2020 18:53:48 GMT

Hi, right now turbotax prevents me from continuing and finalizing my returns. I just wanted to confirm as well that the Febuary 20 2020 turbotax software update/release will fix my situation. Will it allow me to proceed with the QBI deduction? Or at least allow me to decline the deduction. The error I am seeing has a bit more detail now:

"Qualified Business Inc Deduction Summary: Total REIT dividends - If the only 199A income is REIT dividends from one or more 1099-DIVs and your taxable income is over the threshold for your filing status ($160, 700 ( $160, 725 if married filing separately) or $321,400 if married filing jointly) then you cannot file your return at this time. This will be supported in a subsequent release."

I believe that my taxable income is over the filing status, and my 1099-DIV had a small amount of 199A income.

There seems to be no option in the turbotax software to decline the deduction (which would be fine for me, as I expect the deduction will be a very very small amount). I am just stuck and cannot proceed to finalize my return. Every time I click "continue" on the QBI Deduction workflow page, it will just keep asking me to finalize it and confirm the numbers. There is no way to proceed to final taxes.

Re: 199A QBI Deduction

VictoriaD75 — Sun, 09 Feb 2020 21:59:37 GMT

The QBI deduction is reported on Form 8995. While the form is not expected to be available for filing, it will still appear as part of your return. You can try deleting the form to see if it will allow you to proceed.

From the menu on the left, choose Tax Tools
Click on Tools
Select Delete a Form
Scroll through the forms and click Delete next to Form 8995

Re: 199A QBI Deduction

MickTheQuick — Mon, 10 Feb 2020 03:13:06 GMT

I have the same situation as ajamato. For me, Form 8995 does not appear in the list of forms. Is there a recommended way within TT to simply decline this deduction? I was thinking I could just change the amount in field number 9 ("Total REIT Dividends") to 0. Is this legal/acceptable? Thanks.

Re: 199A QBI Deduction

MickTheQuick — Mon, 10 Feb 2020 06:17:42 GMT

UPDATE: I since spoke to one of the advisors in TT and he recommended I just change the root entry for 199A Dividends from my 1099-DIV to zero (it was a whopping $44). This effectively solved the problem and I was able to complete & submit my return.

Re: 199A QBI Deduction

Tootallt004 — Mon, 10 Feb 2020 13:59:10 GMT

I am not a CPA. However, I went in as suggested elsewhere and zeroed out the REIT dividend disclosure number on my 1099 DIV and this caused the software to eliminate the edit error related to this issue. I did not want to wait until February 20th to wait to file for a large refund for what amounted to a $12 deduction with a $3 tax impact. Many people with American Funds mutual funds are experiencing this. I made sure that the REIT dividends in question were included in lines 1 and 2 of the 1099 DIV to make sure that they were included in income, and they were. The line 5 entry in the 1099 DIV appears to be only a disclosure item that could then be used in the 199A calculations.

Re: 199A QBI Deduction

AmyC — Mon, 10 Feb 2020 21:12:41 GMT

The QBI is named for the section 199a dividends. For those of you anxious to file, deleting that entry on your 1099DIV will eliminate the QBI so you can file.

The IRS does expect you to take deductions to which you are entitled. As long as the choice is not affecting your other credits and deductions, there should not be a problem.

Re: 199A QBI Deduction

ajamato — Mon, 10 Feb 2020 21:27:59 GMT

Hi, I just want to get a clear answer on this question.

On Feb 20, will everyone be able to file through TurboTax or not? Or will some users, based on their income level still be unable to proceed and file?

Re: 199A QBI Deduction

ThomasM125 — Mon, 10 Feb 2020 21:34:05 GMT

You will be able to file when the update has been posted to the program. Your income will not affect your ability to file.

Re: 199A QBI Deduction

josan333 — Mon, 17 Feb 2020 15:01:58 GMT

I have turbo tax premier and same problem. Can't delete either. I do know the info is from Vanguard's 1099-div. Hope they resolve this issue

Re: 199A QBI Deduction

MayaD — Mon, 17 Feb 2020 15:43:07 GMT

Revisit the 1099 DIV section and clear the entry in box 5 then try to delete form 8995-A.

Re: 199A QBI Deduction

ftlech — Fri, 21 Feb 2020 00:56:41 GMT

It's Feb 20 and I still cannot file. Is this something that will automatically update my return when the release comes out? Will I be prompted to enter something?

Re: 199A QBI Deduction

PB11 — Sat, 22 Feb 2020 04:18:29 GMT

I tried to use TT today, and even with QBI deductions, TT proceeded till the payment page. So looks like the issue is resolved now.

Re: 199A QBI Deduction

ericinmaryland — Sun, 23 Feb 2020 16:55:38 GMT

@PB11 I think that depends on the version of the K1. Many of us cannot file because of an error on the K1 that Intuit has yet to acknowledge or explain.

Re: 199A QBI Deduction

ericinmaryland — Fri, 28 Feb 2020 19:13:07 GMT

Since Intuit feels no responsibility to post on any QBI thread, the issues with form 8995 (not 8995-A) were fixed on Tuesday. Update your product and see if you can file.

Re: 199A QBI Deduction

1441east — Fri, 28 Feb 2020 21:30:23 GMT

It will not allow me to delete the form???

Re: 199A QBI Deduction

Anonymous — Mon, 02 Mar 2020 04:16:22 GMT

If you are using the desktop version of Turbo Tax, be sure to click on "Check for Updates" and update your software if needed. If that doesn't work you can manually update your software.

If you are using the online version, you can try deleting your browser's cookies. Please see this Turbo Tax FAQ regarding How to delete cookies! If that doesn't work, try using a different browser all together.

Re: 199A QBI Deduction

Blah8 — Tue, 03 Mar 2020 05:11:09 GMT

This appears to be another case of Intuit denying a problem. The desktop software updated automatically or manually does not correct the problem for Box 1 K-1 filer. I suspect there is a huge liability under the "100% Accurate Calculations Guarantee". Please step up, fix this, and communicate to users. Surely countless users have already lost huge QBI sums of money due to this failure.