199A QBI Deduction

Forum|Forum|6 years ago
February 7, 2020
4 replies
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After entering REIT dividends from box 5 of 1099 DIV, TurboTax Deluxe created and filled in a Qualified Business Income Deduction Summary worksheet. This is now triggering the message: "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, then you cannot file your return at this time. This will be supported in a subsequent release."

What release? When? Do I need to upgrade to TurboTax Premier or will I get the same message?

Best answer by VictoriaD75

You are receiving dividends from a REIT (Real Estate Investment Trust), which qualifies for a Section 199A deduction. This does not mean you had Qualified Business Income (QBI), but you could qualify for the deduction. REIT dividends are reported on a Schedule K-1 or in box 5 of the 1099-DIV. This requires Form 8995-A, which is expected to be available on February 20, 2020.

Qualified Business Income Deduction

Forms Availability

VictoriaD75Answer

Level 12

Qualified Business Income Deduction

Forms Availability

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PB11

Level 2

@VictoriaD75

>> This requires Form 8995-A, which is expected to be available on February 20, 2020.

Will the form be available on Feb 20 on IRS website, or in TT online? Can you please clarify?

AmyC

Level 15

UPDATE: I since spoke to one of the advisors in TT and he recommended I just change the root entry for 199A Dividends from my 1099-DIV to zero (it was a whopping $44). This effectively solved the problem and I was able to complete & submit my return.

The QBI is named for the section 199a dividends. For those of you anxious to file, deleting that entry on your 1099DIV will eliminate the QBI so you can file.

The IRS does expect you to take deductions to which you are entitled. As long as the choice is not affecting your other credits and deductions, there should not be a problem.

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josan333

Level 2

I have turbo tax premier and same problem. Can't delete either. I do know the info is from Vanguard's 1099-div. Hope they resolve this issue

MayaD

Alumni - Intuit

Revisit the 1099 DIV section and clear the entry in box 5 then try to delete form 8995-A.

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ftlech

Level 2

It's Feb 20 and I still cannot file. Is this something that will automatically update my return when the release comes out? Will I be prompted to enter something?

PB11

Level 2

I tried to use TT today, and even with QBI deductions, TT proceeded till the payment page. So looks like the issue is resolved now.

IamIntractable

Level 6

@PB11 I think that depends on the version of the K1. Many of us cannot file because of an error on the K1 that Intuit has yet to acknowledge or explain.

pollyken

Level 2

My statement lists '5 Section 199a Dividends ......... 65.09'

what do I do with this?

AmyC

Level 15

The program takes the amount from your box 5 and creates the QBI deduction for you. The QBI is named for the section 199a dividends. To verify your deduction:

Log into your return
Choose the federal section
On the left, go to Tax Tools

If you have paid for your return, simply choose the Print return option and the forms will appear on your screen for you to view.
If you have not paid for your return: