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RXC1
New Member

I don't see any updated answers to the 20% qualified business deduction. Is this now updated in TT? I don't see it in my calculations so far.

 
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JulieCo
New Member

I don't see any updated answers to the 20% qualified business deduction. Is this now updated in TT? I don't see it in my calculations so far.

Yes, TurboTax will calculate the QBI deduction behind the scenes and it will be reported on line 9 of your 1040 form.  Therefore, you will need to enter your business income and expenses (if your business is a schedule C) or your K-1 form(s) and once you get through the entry of the activity and depending upon the type of business entity activity, you may be brought through a couple questions related to the qualified business income deduction.  Once you complete the section, then TurboTax will calculate the deduction. 

In order for K-1 activity to be included in the QBI deduction calculation, the K-1 form needs to have an amount(s) in certain boxes: 

  • For Form 1065 K-1 forms, amounts need to be in box 20 with codes within the range of Z to AD or 
  • For 1120S K-1 forms, amounts need to be in  box 17 with codes of V, W, X, Y and/or Z

Please note that not all rental income qualifies for the QBI, see more information in this link below:


Here is more information on the Qualified Business Income Deduction, including examples of how the deduction is calculated in the different taxable income threshold levels:


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1 Reply
JulieCo
New Member

I don't see any updated answers to the 20% qualified business deduction. Is this now updated in TT? I don't see it in my calculations so far.

Yes, TurboTax will calculate the QBI deduction behind the scenes and it will be reported on line 9 of your 1040 form.  Therefore, you will need to enter your business income and expenses (if your business is a schedule C) or your K-1 form(s) and once you get through the entry of the activity and depending upon the type of business entity activity, you may be brought through a couple questions related to the qualified business income deduction.  Once you complete the section, then TurboTax will calculate the deduction. 

In order for K-1 activity to be included in the QBI deduction calculation, the K-1 form needs to have an amount(s) in certain boxes: 

  • For Form 1065 K-1 forms, amounts need to be in box 20 with codes within the range of Z to AD or 
  • For 1120S K-1 forms, amounts need to be in  box 17 with codes of V, W, X, Y and/or Z

Please note that not all rental income qualifies for the QBI, see more information in this link below:


Here is more information on the Qualified Business Income Deduction, including examples of how the deduction is calculated in the different taxable income threshold levels:


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