When TurboTax asks "Is this Qualified Business Income" do I answer "yes" even though we are an LLC (taxed as a partnership), and our members receive guaranteed payments, which I know do not qualify for the QBI? Will it all just work itself out?

danielle-51 — Mon, 23 Feb 2026 12:39:43 GMT

Re: When TurboTax asks "Is this Qualified Business Income" do I answer "yes" even though we are a...

HopeS — Mon, 13 Feb 2023 17:05:30 GMT

Yes, partnerships generally are eligible for the Qualified Business Income Deduction (QBI) However, the guaranteed payment is not included in the QBI calculation. Guaranteed payments actually reduce the amount of income otherwise eligible for the QBI deduction.

TurboTax will automatically make the QBI deduction calculation for you.

Below are helpful links on Guaranteed Payment and QBI.

Calculation of Plan Compensation

Guaranteed payment on a partnership return

@danielle-51

topic When TurboTax asks "Is this Qualified Business Income" do I answer "yes" even though we are an LLC (taxed as a partnership), and our members receive guaranteed payments, which I know do not qualify for the QBI? Will it all just work itself out? in Deductions & credits

When TurboTax asks "Is this Qualified Business Income" do I answer "yes" even though we are an LLC (taxed as a partnership), and our members receive guaranteed payments, which I know do not qualify for the QBI? Will it all just work itself out?

Re: When TurboTax asks "Is this Qualified Business Income" do I answer "yes" even though we are a...