QBI Deduction

Do you know what kind of K-1 you are using?  There are three different kinds of K-1’s that can be entered into TurboTax software. 

• Partnerships/LLCs (form 1065)
• S corporations (form 1120S)
• Estates and trusts (form 1040) 

You should be able to read the top of the form and determine which K-1 that you will be entering. 

I think that you are asking about S corporations (form 1120S).  If so, in TurboTax Online, follow these directions. 

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Wages & Income.
• Under Your income, scroll down to Schedule K-1 and click Edit/Add to the right.
• At the screen Tell us about your Schedule K-1, you tell the software which Schedule K-1 you received.
• For several screens, you will be entering data right off the K-1 form. 

K-1 1120S box 17 information is entered under code V.  If the K-1 has no dollar amount, the Section 199A income should be on an attached statement.

At the screen We see you have Section 199A income I suspect that you will choose The income comes from the S corporation that generated this K-1.

At the screen We need some information about your 199A income, you will likely enter: 

• an income line,
• a W-2 wage line and
• a UBIA of qualified property line. 

Hopefully this information is on an attached statement if the information is not listed on the K-1 itself.

You will to reach the screen Great news!  You get a tax break if you qualify for a qualified business income deduction.