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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