topic QBI deduction in Deductions & credits

QBI deduction

Jim H — Sat, 29 Feb 2020 16:54:40 GMT

TurboTax will not allow me to enter data on Forms 8995/8995A to obtain a QBI deduction. Are these forms not functional as of this date, 2/29/20?

Re: QBI deduction

DianeC958 — Sat, 29 Feb 2020 17:31:26 GMT

You cannot enter information directly on these forms. If you qualify for the Qualified Business Income Deduction you are asked questions as you put in the information from your business to see if the income qualifies for the deduction.

If you received a K-1 from and Partnership (1065 K-1) or from an S-Corp (1120S K-1) the information shows in box 20 for the 1065 K-1 or box 17 for the 1120S K-1.

The program then uses the information to calculate the Qualified Business Income Deduction to report on your return.

Do I qualify for the qualified business income deduction?

Re: QBI deduction

Jim H — Sat, 29 Feb 2020 17:48:08 GMT

Thank you.

I was not clear when I asked my question.

My QBI was generated when I sold a complete limited partnership interest in 2019. The ordinary income component of the total gain was calculated using the K-1 "sales schedule". I also sold a different LP in 2018 and, at that time, was able to enter the data directly into the QBI worksheet.

Is something different this year?

Re: QBI deduction

DianeC958 — Sun, 01 Mar 2020 14:57:24 GMT

Yes, you cannot make any entries directly to form 8995 for 2019 unless you purchase the desktop version of TurboTax and override the entries the program makes.

Re: QBI deduction

Jim H — Mon, 02 Mar 2020 19:09:29 GMT

Thanks for your reply.

Will TT upgrade the software so it accepts Form 8995 data directly?

The ordinary income I generated by selling a PTP position automatically transferred to Form 4797, Part ll but from there it does not flow to Form 8995, as it should. I finally did enter the data into Form 8995 using the override function. However, TT does not like the use of override and now every cross check flags these entries as errors.

Help!

Re: QBI deduction

DaveF1006 — Tue, 03 Mar 2020 20:18:48 GMT

TT will ask if you wish to upgrade the product. The only issue with the override is that you cannot electronically file the return. if you are comfortable with your overrride and have no other option, you can print and mail your return.

Re: QBI deduction

Angeli — Sat, 25 Apr 2020 21:53:57 GMT

So is this a bug in the software?

Or turbotax has not done the form 8995 and 8995A

Seems like there is no calculation formula set on 8995A.

Re: QBI deduction

Jim H — Sun, 26 Apr 2020 18:39:13 GMT

While one could make direct entries onto Form 8995 in tax year 2018, in tax year 2019 one could not (?why). Using the override function is never a good option. TT just doesn't like it.

You need to find the correct form(s) on which to enter your QBI figures. For me they were Form 1065 (K-1) and K-1, additional information, sale of partnership interest.

Once you enter these figures on the appropriate forms, the QBI information should flow to form 8995 and the deduction be automatically calculated.