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New Member
posted Apr 9, 2025 5:34:54 PM

I do not qualify for the qualified business deduction that turbo tax is giving me. How do I remove it?

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2 Replies
Expert Alumni
Apr 9, 2025 5:59:06 PM

It depends on where it is entered.  There is a QBI section in Self-Employment, Rental Properties and for REITs.  Find the section that you have the QBI, then go to that section and Edit to elect not to add as QBI.  

Level 15
Apr 10, 2025 5:28:59 AM

The usual reason for the qualified business income (QBI) deduction mysteriously showing up on your tax return is that you have an amount in box 5 of a 1099-DIV (Section 199A dividends).

 

This is income from REITs (Real estate investment trusts). Your mutual fund has holdings (investments) in REITs. It qualifies for the QBI deduction. Don't try to remove. 

The alternative is delete the box 5 amount at the 1099-DIV screen.  The amount is already included in box1, so it gets reported and taxed, even if your remove it from box 5.