199A QBI deduction don't calculate correctly for p...
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Returning Member

199A QBI deduction don't calculate correctly for pass-through income from S Corporations - 20% deduction can be missed!

On my Form K-1 from my S Corporation, box 17 has three codes: W-Section 199A W-2 wages; V-Section 199A income; X - Section 199A Unadjusted Basis.  The number (pre-tax profit) reflected under code V does not flow to the Qualified Business Income Summary even though it should qualify for the 20% QBI deduction based on my situation.  The profit from my other business profit on Schedule C flows to the QBI Summary correctly. 

I noticed that the QBI Summary's middle section shows PTP Income.  I went back to the entries for K-1 to change the code from V to Z (Section 199A PTP), then this income flows to the QBI Summary and qualifies for the 20% deduction.  Suddenly my taxes went down by over $9,000.  Therefore, I have concluded that TurboTax hasn't linked all the codes available for box 17 on form K-1 from S Corporations to the QBI Summary.  In addition, the software needs to be smart enough to figure out if code W number or code V number to use on the QBI summary.  TurboTax, please read this article closely to fix this problem quickly for all shareholders of S corporations:  https://www.taxslayerpro.com/kb/55235/Qualified-Business-Income-Deduction---Overview?language=1&cate...

It's easy to miss if you don't use the Form mode to check the numbers.  I couldn't do this using the online version and had to download TurboTax Premier (Mac) this weekend to use the Form mode to see the detailed calculation of 199A deduction that flows to the line 9 of Form 1040, reducing taxable income.  TurboTax, please get back to me soon as I don't want to file it using the wrong code.  

4 Replies
New Member

199A QBI deduction don't calculate correctly for pass-through income from S Corporations - 20% deduction can be missed!

this is making me crazy, has anyone gotten an answer.  I will end up doing this myself, or using another's software, I suppose I will be asking for a refund of what I paid for the tt software !

New Member

199A QBI deduction don't calculate correctly for pass-through income from S Corporations - 20% deduction can be missed!

I have the same issue.  Ridiculous. 

Level 3

199A QBI deduction don't calculate correctly for pass-through income from S Corporations - 20% deduction can be missed!

How did you end up dealing with this? I filed on the extended s-corp deadline this month and it STILL just says in Box 17 of the K-1s:

V *STMT

W *STMT

It worked last year and everything this year is very similar except we didn't take any distributions, so  I don't know what's going on. Are there statements I need to find to input the actual Box 17 numbers on our 1040s? This is causing us to owe way more in taxes than we paid, because I assumed we'd be getting this deduction again since everything is similar to last year.

 

New Member

199A QBI deduction don't calculate correctly for pass-through income from S Corporations - 20% deduction can be missed!

sadly, due to death in family, I have not completed my returns yet... hope to next week actually, am currently out of town.. I did however, get another's return filed so i must have figured out a work around... I may have just over rided the numbers myself..I honestly dont remember...  If you havent gotten past it, I'll let you know next week when I tackle mine...frustrating isnt it ?

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