Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 3, 2019 12:52:53 PM

Has turbotax put the 20% pass through deduction into their software yet? I don't see it calculated and I'm almost certain I qualify. I am a sole-proprietor.

0 31 6909
1 Best answer
Level 15
Jun 3, 2019 12:52:57 PM

Not yet.  The new 20% QBI deduction is available to Sch C filers and when the program is fully updated sometime late January at the earliest ... you will see the deduction happen automatically. 

24 Replies
New Member
Jun 3, 2019 12:52:54 PM

when is it going to be there-QBID

Returning Member
Jun 3, 2019 12:52:56 PM

when is it going to be in turbo tax

Level 15
Jun 3, 2019 12:52:57 PM

Not yet.  The new 20% QBI deduction is available to Sch C filers and when the program is fully updated sometime late January at the earliest ... you will see the deduction happen automatically. 

Level 15
Jun 3, 2019 12:52:58 PM

[Edit:  This comment may only apply to the CD/download version of TurboTax Home & Business] Make sure that you gone through the entire Business section, including Profit and Loss from Business, editing your business and clicking the Continue button on the Your [XXX] Business page.  TurboTax does not generate the QBI deduction worksheets until you click that Continue button.

Level 15
Jun 3, 2019 12:52:59 PM

However, it might not yet be working at all in the online version of TurboTax.

Level 3
Jun 3, 2019 12:53:01 PM

Sched E and LLC / entity income supposed to be be reduced by 20% as well.

New Member
Jun 3, 2019 12:53:02 PM

Is there any update on the status of this within the online version?

Level 2
Jun 3, 2019 12:53:03 PM

It worked for me in the Self Employed online version, but you have to completely finalize your business income and expense section

New Member
Jun 3, 2019 12:53:04 PM

Got it. How does it show if it's done it? I just can't tell at this point.

New Member
Jun 3, 2019 12:53:06 PM

To verify that you received the QBI deduction, go the forms view and look at line 9 of the 1040.  If you received the deduction, this line will contain the dollar amount.

Level 2
Jun 3, 2019 12:53:07 PM

You should also see a huge drop in the amount of taxes due or an increase in the amount of your refund. When I finally completed the business section, I noticed the refund changed from $1500 to $3500

New Member
Jun 3, 2019 12:53:08 PM

Thank you both!!!

Level 2
Jun 3, 2019 12:53:09 PM

I finally discovered that this QBI deducation is way more complicated than it seems.  I tried to make a maximum deduction to my Solo 401-K and guess what? It affects my QBI.  Found this article by searching Google "How The New QBI Deduction-Reduction Ruins The Value Of Pre-Tax Retirement Plans For Small Business Owners" -  Read it if you like or anyone else who is trying to take both deductions:  <a rel="nofollow" target="_blank" href="https://www.kitces.com/blog/199a-qbi-deduction-reduction-small-business-owner-retirement-plan-contributions-roth/">https://www.kitces.com/blog/199a-qbi-deduction-reduction-small-business-owner-retirement-plan-contributions-roth/</a>

New Member
Jun 3, 2019 12:53:10 PM

it's now march - it doesn't seem that this deduction is automatically populating yet?

New Member
Jun 3, 2019 12:53:11 PM

I agree. Did taxes yesterday with S-Corp earnings and no Line 9 entry by TT.

New Member
Jun 3, 2019 12:53:13 PM

I agree. Did taxes yesterday with S-Corp earnings and no Line 9 entry by TT.

New Member
Jun 3, 2019 12:53:14 PM

It is April already. Still can't find it. I was trying to enter V into Box 17 of K-1 - THERE IS NO SUCH OPTION!  I am using Online Premier version. Does anyone know if it is available in Online Self-Employed version?

New Member
Jun 3, 2019 12:53:16 PM

I am not getting credit either. Something must be wrong.

New Member
Jun 3, 2019 12:53:17 PM

I found it. K-1 1065 - Box 20 Codes Z through AD

New Member
Jun 3, 2019 12:53:18 PM

Brilliant Igor!! Thank you!

New Member
Jun 3, 2019 12:53:19 PM

Nice Igor. This works when it's a partnership.

New Member
Jun 3, 2019 12:53:20 PM

Box 17 Code V

New Member
Jun 3, 2019 12:53:21 PM

That is K-1 Form 1120S (S Corp) ?

Level 2
Jun 3, 2019 12:53:23 PM

4/14/19 and it still doesn't work. TT support spent 2h with me today trying.  Then they said I have to give up on the online version and do the desktop version.  Now the download is not available even though I'm supposed to have download with Small Business edition, and despite completing my taxes days ago, I CAN'T FILE.   First and Last time I ever use TT.  I hope they have a class action suit about this - I"m sure millions of small business owners are failing to get this deduction, and being new, many probably don't even realize.   What a shoddy product (I'm a sole proprietor)