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New Member

How can I calculate the Section 199a deduction using TurboTax Deluxe?

 
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New Member

How can I calculate the Section 199a deduction using TurboTax Deluxe?

If you have self-employment income from a 1099 MISC form that is reported on Schedule C, TurboTax will automatically calculate the Section 199a deduction for you.  (If you have income from a K-1, you will need to upgrade to TurboTax Premier.)  This deduction can be found on line 9 of your 1040 form.  

After entering your self-employment income, TurboTax will ask a few questions that help determine if your business is eligible for the 199a deduction.  These questions are whether the income was earned in the United States and whether the income was earned from a former employer.  Otherwise, TurboTax will calculate the deduction for you as it is based on several factors, including your personal taxable income.  For taxable income under the lowest threshold of taxable income of $157,000 single and $315,000 joint, the deduction is either 20% of your qualified business income (which is your business profit less self employment taxes, self employed health insurance premiums, etc) OR 20% of your taxable income less capital gains/dividends. 

Here is more information on the deduction:

https://ttlc.intuit.com/replies/7019998

Here is how to preview your 1040 form in TurboTax Online:

https://ttlc.intuit.com/replies/3302322




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Level 1

How can I calculate the Section 199a deduction using TurboTax Deluxe?

I am getting an error that states "Sch K-1Wks-Partnerships (...): Activity name has entries for certain deductions such as section 179, depletion, section 59(e)(2) and other expenses that may be individually limited. For purposes of the qualified business income deduction those expenses are not yet supported. This will be enabled in a subsequent release."

The program is not letting me efile my return because of this and I have went through everything twice to try and fix the problem. Is there an update coming regarding this?

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Expert Alumni

How can I calculate the Section 199a deduction using TurboTax Deluxe?

Yes, the update is due on February 5th so try again on Wednesday!  @lmyers67

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Level 2

How can I calculate the Section 199a deduction using TurboTax Deluxe?

I am having a similar problem on Check This Entry.  Qualified Business Income Summary.  Total REIT dividends- If the only 199A income is REIT dividends from one or more 1099 -Divs and your taxable income is over the threshold for your filing status ($160, 700 ($160,725 if married filing separately or $321, 400 if married filing jointly) then you cannot file your return at this time.  This will be supported in a subsequent release. 

 

I am above the filing status for this deduction so I believe I should not get a deduction on Line 10 , yet Line 10 does show an amount.  TT will not allow me to file my return at this time I believe because of this.

 

Will this problem also be fixed on the February 5 update?

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Expert Alumni

How can I calculate the Section 199a deduction using TurboTax Deluxe?

I recommend performing a final review once the updates are finalized after 02/05/2020.  The information should calculate correctly without generating an error.

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New Member

How can I calculate the Section 199a deduction using TurboTax Deluxe?

Haven't seen this update yet? I'm still getting the same message, and it's the 7th....any idea what's going on?

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Expert Alumni

How can I calculate the Section 199a deduction using TurboTax Deluxe?

Form 8995-A for QBI deduction (Section 199A) is now expected to be available on 2/20/2020.  

 

I am attaching the Forms availability list for both TurboTax, as well as IRS.  

 

Forms need to be finalized and approved by IRS before they will accept e-filed returns using these forms through Turbo Tax.

 

Turbo Tax Forms Availability  TurboTax Forms Availability

 

IRS Forms Availability  IRS Form Availability

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New Member

How can I calculate the Section 199a deduction using TurboTax Deluxe?

I am getting this exact same message. It’s unclear what I am supposed to fix, and the program will not let us change anything at all on that form. 

Did you have any luck figuring this out?

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Level 2

How can I calculate the Section 199a deduction using TurboTax Deluxe?

I did a review after the 2/5/20 update and I still receive this error message.  I am not self employed, do not own a business, do not have a 1099 MISC , have $0.00 in Box 5 on my 1099-Divs, am over the income limit for qualifying for the deduction for line 10 on my 1040.  I am at a complete loss on why I get this error message and why I cannot file due to this error.  Thanks

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Level 2

How can I calculate the Section 199a deduction using TurboTax Deluxe?

My mistake.  I looked at my line 5 on my 1099 DIVs and did find an entry.  I'll update TT on 2/20/20 and hopefully the update will allow me to file.  

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Expert Alumni

How can I calculate the Section 199a deduction using TurboTax Deluxe?

Great, thank you for using TurboTax.

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New Member

How can I calculate the Section 199a deduction using TurboTax Deluxe?

I am having a similar problem on Check This Entry. Qualified Business Income Summary. Total REIT dividends- If the only 199A income is REIT dividends from one or more 1099 -Divs and your taxable income is over the threshold for your filing status ($160, 700 ($160,725 if married filing separately or $321, 400 if married filing jointly) then you cannot file your return at this time. This will be supported in a subsequent release.

I am above the filing status for this deduction so I believe I should not get a deduction on Line 10 , yet Line 10 does show an amount. TT will not allow me to file my return at this time I believe because of this.

 

Does anyone know when Turbo Tax will put out the update to fix this?  I thought it was supposed to be Feb. 5th but I haven't seen anything yet.  Thanks. 

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Expert Alumni

How can I calculate the Section 199a deduction using TurboTax Deluxe?

The latest update release is 02/20/2020 for form 8995-Form 8995-A, Qualified Business Income Deduction. Please select this link to verify. Scroll to the bottom of the link where it addresses Form 8995.

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New Member

How can I calculate the Section 199a deduction using TurboTax Deluxe?

Thank you for this reply! The page says the form is available now - but I'm not seeing it on my Turbotax Software download? I still get the message: "Sch K-1 Wks-Partnerships (business name): Activity name has entries for certain deductions such as section 179, depletion, section 59(e)(2) and other expenses that may be individually limited. For purposes of the qualified business income deduction those expenses are not yet supported. This will be enabled in a subsequent release."

 

Any idea of what I need to do? I'm hoping I just have to wait a little bit longer for form 8995-A to be available (maybe later today?), but I'm so confused as to why i'm getting this message.

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