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New Member
posted Feb 19, 2020 11:39:06 AM

How is line 10 on 1040 computed when I have no businesses and the total of line 5 on my dividends does not equal the number on fthe form that feeds it?

How is line 10 on 1040 computed when I have no businesses and the total of line 5 on my dividends does not equal the number on the form that feeds it?

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2 Replies
Expert Alumni
Feb 19, 2020 1:21:04 PM

Line 10 of Form 1040 is Qualified Business Income deduction, which is calculated on Form 8995 or Form 8995-A. 

 

In addition to a traditional business, QBI is also:

  1. Qualified REIT dividends.
  2. Qualified PTP income or loss.
  3. Income from K-1 forms.
  4. Rental income, if certain requirements are met.

 

Since you also mentioned line 5 of 1099-DIV, if you have a figure there, that is what is triggering the QBI deduction. To see how it was calculated, just take a look at Form 8995 or 8995-A, 

 

Level 2
Feb 23, 2020 7:43:52 AM

Agree i had a test number in my dividends and deleted when got actual data. The total does not equal the parts.. Think there is a software flaw