topic Tax Year Prior to 2020: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can't find the QBI anywhere. in Business & farm

Tax Year Prior to 2020: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can't find the QBI anywhere.

bszoka — Tue, 23 May 2023 21:57:53 GMT

In addition to being triggered by information on a K-1, t...

AnnetteB — Sat, 01 Jun 2019 21:18:33 GMT

In addition to being triggered by information on a K-1, the QBI deduction may also be a result of dividends from a REIT, income from Schedule C, or income from Schedule E.

If you need to change your answer to the question about whether your business or rental qualifies as QBI, go back to the Schedule C or Schedule E section and edit the name of your business or rental. Then click Done to leave that section and the QBI questions will come up so you can review your answers.

Re: In addition to being triggered by information on a K-1, t...

1948biddle — Tue, 11 Feb 2020 03:06:47 GMT

I have no business name or rental to edit in schedule C or E because I have no business or rental. I did, however, try to go to Schedule C and E just to see what info it contained. When I entered Schedule C in the search box under Tools, I got a window that asked me if I had any self-employment income. I answered "no". A search for Schedule E, brought up a window that asked if had income from rentals.I answered "no". I when through the review step and found that Turbo Tax is still showing me with a $15 QBI Deduction and won't let me go on because my income is over the mandatory limit for a deduction. So nothing was accomplished. I still need to find a way to remove the QBI deduction so I can complete my tax return.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

ThomasM125 — Tue, 11 Feb 2020 20:57:27 GMT

You can search for schedule E or C or a K-1 entry in your program and if you find one that you don't need, you can delete the form as follows:

1. Find the Tax Tools option on your left menu bar and click on it

2. Click on Tools

3. Find Delete a Form and click on it

4. Look for the form in the list of forms and click on the option to delete it

You can also view your form 1040 in the online TurboTax product to see if you can tell where the QBI is coming from by following these steps:

1. Find the "Tax Tools" option on your left menu bar and click on it

2. Click on "Tools"

3. Click on "View Tax Summary"

4. On your left menu bar find the "Preview my 1040" option and click on it

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

1948biddle — Thu, 13 Feb 2020 15:21:52 GMT

Thanks for your suggestions. Schedule E, C, and K-1 are not needed because I am not self-employed, do not own a business, and have no rentals. Schedule E, C, and K-1 are not listed under "Delete a Form" in the list of forms. Form 8995-A (QBI Deduction worksheet is on the list but I am afraid to delete it because there is a note at the bottom of the list that says that deleting forms is not recommended.

"View Tax Summary" line 10 says "QBI Deduction. Attached Form 8995 or 8995-A: $15"

I did a Topic Search for Schedules C, E, and K-1 and answered "No" to the following questions: 1.) Did you have any self-employment income or expenses? 2.) Did you have any rental or royalty income or expenses in 2019 for property you own? 3.) Did you receive Schedule K-1 or Q?

I then ran the Federal Tax Review loop again. In response, I got a window that said "It looks like some of your tax forms aren't ready. It turns out some areas aren't yet ready for your specific tax situation. If you sign up for email notifications, we'll let you know as soon as your forms are ready: Form 8995A - Qualified Business Income Deduction. Available to file 2/20/20". I don't understand why Form 8995A would be applicable since I have no small business or rental. Form 8995 (no "A") line 6 may apply because I received three 1099-DIV forms from Fidelity with small dollar amounts in Box 5 Section 199A Dividends ($5, $60, $10).

I don't care about the $15 QBI deduction. I just want to complete my taxes.

Thanks for your help.

Tedd

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

ThomasM125 — Thu, 13 Feb 2020 20:46:36 GMT

The box 5 entry on your 1099-DIV is what is causing the QBI deduction. You can remove it if you want, it will just increase your tax by a minimal amount it seems.

You may have to delete the 8995 form though after you fix the 1099-DIV.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

Hollyr — Wed, 19 Feb 2020 17:50:57 GMT

Hi, I downloaded TT from Amazon and I just don't see "Tax Tools" anywhere. When I open Form 8995, I go to Form on the top and click on Remove Form 8995. But it doesn't remove the form from the list and I still see the $11 deduction on my 1040 form. I really want to delete this form and the deduction as it is holding up my filing. Thanks.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

JamesG1 — Wed, 19 Feb 2020 18:09:33 GMT

The qualified business income deduction can be invoked from self-employment income, rental income, K-1 income and 1099-DIV box 5 income.

Which one of these incomes (or more than one) do you think is invoking the QBID computation?

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

Hollyr — Wed, 19 Feb 2020 18:23:18 GMT

I thought it was coming from Schedule E but it seems like it came from Reit dividend so I think I fixed it. Thanks!

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

JamesG1 — Wed, 19 Feb 2020 18:29:07 GMT

We see that deleting the REIT dividends from box 5 of the 1099-DIV will remove the qualified business income deduction for many people.

But after removing the entry, you need to consider whether the IRS will be asking questions at some point down the road.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

Hollyr — Wed, 19 Feb 2020 18:52:14 GMT

Oh Ok even if deleting means I am not getting a credit I am entitled to and that my taxes would be more? I am deleting it because when I went to file I got the message from TT that I can't do efiling because of the QBI form and I really want to efile and get this over with. Thanks for your help!

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

JamesG1 — Wed, 19 Feb 2020 19:07:00 GMT

It is always possible that the IRS will ask questions about income that was reported to them but you are not reporting on your tax return.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

1948biddle — Wed, 19 Feb 2020 20:34:47 GMT

It is coming from 1099-DIV box 5.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

1948biddle — Wed, 19 Feb 2020 20:36:03 GMT

How did you fix it?

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

ThomasM125 — Wed, 19 Feb 2020 20:45:07 GMT

You can leave the box 5 entry off of your 1099-DIV entry, it may increase your tax liability though.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

1948biddle — Wed, 19 Feb 2020 20:47:44 GMT

I have no way of knowing that. As it stands right now, TT says I can't file my taxes. I got a window that said "It looks like some of your tax forms aren't ready. It turns out some areas aren't yet ready for your specific tax situation. If you sign up for email notifications, we'll let you know as soon as your forms are ready: Form 8995A - Qualified Business Income Deduction. Available to file 2/20/20". It would appear that I am left with a choice of deleting the value in box 5 and filing my taxes or not filing my taxes until TT gets its act together.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

1948biddle — Wed, 19 Feb 2020 20:57:14 GMT

Box 5 is only $75 so I can't imagine it increasing my tax liability very much. My concern is that if I am ever audited, the IRS might be displeased with me for delegating it.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

VictorW9 — Wed, 19 Feb 2020 21:08:29 GMT

Qualified business deduction can occur with a schedule C or a schedule E. So, it doesn't really have to be with a K-1.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

1948biddle — Wed, 19 Feb 2020 21:20:29 GMT

I don't have a schedule C or E. There is no K-1. Fidelity put $75 in 1099-DIV box 5. I called them and asked why. They don't know why there is a value in box 5. Their best guess is because it is a S&P 500 index fund and maybe one of the investments within the 500 is in real estate.

Re: How do I remove a qualified business income deduction? I don't have a K-1 to delete and I can...

VictorW9 — Wed, 19 Feb 2020 21:45:29 GMT

No, this amount is actually a share of expenses of a non publicly offered mutual fund. If you itemize, you may have been able to deduct these expenses on your schedule A subject to the 2% limit that went away under the new Tax Cuts and Jobs act.