Why is 8995-A all zeros even though we qualify for the QBI?

[LS251]

We received and entered 2 K-1's for the business we own (one for each spouse). We are not specified services. The form 8995-A shows $0 on every line rather than filling in QBI and W-2 wages.

[DavidS127 · Accepted solution]

Check to make sure your K-1 entry included entry on the screens to enter your Section 199A/QBI information provided with your K-1. These screens are described and shown in screenshots later in this post.

For a partnership Form 1065 Schedule K-1, the Schedule A QBI information is entered into TurboTax as box 20 with a code Z.

For an S-corp Form 1120S Schedule K-1, the Schedule A QBI information is entered into TurboTax as box 17 with a code V.

Form a trust Form 1041 Schedule K-1, the Schedule A QBI information is entered into TurboTax as box 14 with a code of I (as in India).

You'll need to put the information on each of the K-1 statements into the categories shown in the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens (see two screenshots later in this post). 

Enter the code Z or V or I when you enter the K-1 box 20 or 17 or 14 screen, but you don't need to enter an amount on the "box" screen.  Continue on, and you'll find the two screens.  When you check the box next to a category you need, a place will open up to enter your amounts.  The applicable line(s) on these screens must be completed in order for your K-1 QBI information to be correctly input into TurboTax. 

To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.

Here are the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens where you enter the information from your K-1: