Qualified Business Income Deduction

[John8565]

Turbotax 2019 Delux is giving me a Qualified Business Income Deduction even though I do not have business income and are not qualified for this deduction.

[ThomasM125]

The deduction may be coming from a K-1 entry that you made. You may have an investment in a partnership or S corporation that has QBI income, so you would get a deduction for that.

Also, you may have entered a form 1099-MISC that reported income in box 7. That would be considered self-employment income even if you don't consider yourself self-employed. You would be entitled to a QBI deduction for that also.

[John8565]

Thanks for your reply. I have searched those  forms and more and still can’t find the source of the number. However I discovered that the QBI Deduction Summary form is not ready yet (even though it’s out there) and will be released by Turbotax on February 12th. At that time I am hoping that the number may go away. If not deleting form 8995 and the QBI Deduction Summary is the recommended fix offered by Turbotax. They can’t be deleted now however as they haven’t been released yet. Thanks again. 

[John8565]

2-7-2020 I found the the answer. The Vanguard Total Stock Market Fund actually has some income from REITS that qualifies for the deduction. This seems new this year.  This is passed through to Turbotax when the 1099 is downloaded. Because of joint filing the number is doubled up making it hard to find by simply scanning the applicable forms. Thanks for all your help. 

[Anonymous]

Thanks for that answer but It didn't work for me.  I don't have Vanguard Total Stock Market fund but do have several of their funds, which I removed from TT to see it that was the problem, and it still shows the QBI deduction...Help!

David

[guitarista926]

I have the same issue! My best guess is this is related to the prior tax year return that I transferred to 2019 TurboTax. I had a 1099-MISC in 2018 but none in 2019. When 2018 info was transferred over to 2019, it triggered to include Form 8995 and I cannot delete it despite removing tax history.

Unfortunately I had to redo everything from scratch to remove that form.

[KrisD15]

QBI is also calculated on REIT dividends and qualified PTP income.

Check your financials for those types of investments. 

QBI

[John8565]

Thanks, you are correct. I didn’t expect REIT dividends from a non-REIT fund but there were some. 

[rkierski]

What area of my 1099-DIV/1099-INT would have information about REIT dividends?

[JohnW222]

Please see the TurboTax Help article “Tax Tips for Real Estate Investment Trusts” for relevant information about REIT reporting on Form 1099-DIV..