Can you tell me how the Qualified REIT Dividends number between lines 5 and 6 is generated on the QBI Simple Worksheet?

[BR85597]

I have dividends, capital gains, stocks, and K-1's from several limited partnerships but not sure how the program is coming up with this qualified REIT dividend number for the QBI calculation.  Seems to be from other than just the K-1 info.  Should I just trust it if I know my other inputs are correct?  It is giving me a tax credit so would like to make sure it is right. 

[DanielV01]

It's probably correct.  REIT dividends, while not technically QBI, do qualify for the Section 199A deduction.  Your K-1s are reporting that information in Boxes 5 and 6 like you mention, and in Box 20 with a code of AC.  If you have entered this information from each K-1 as it appears in your paperwork, and QBI is calculating, it is a deduction you are entitled to.

[BR85597]

If it is only coming from the K-1s, it is definitely concerning to me since there are no dollar figures on my K-1s for part III box 6 or for box 20 with a code of AC.  I did see where code AC actually refers to REIT dividends which is helpful.  Double checked the input and the number is not coming from there.  All box 6 and Box 20 code AC are zero for my K-1s.  Still a mystery.

[DanielV01]

Do you have a 1099-DIV with dividends marked in box 5?  That is another source where REITs are reported.

[BR85597]

I just sent a response but it didn't post so will try again.  Yep.  I had just headed down that road before I saw your reply.  I have numerous publicly traded reits and a couple of direct investment ones that reported Section 199A dividends.  I was adding them all up and got within a couple of hundred bucks of the number on the QBI worksheet so that must be where TT is getting it from.  Thanks DanielV for getting me on the right path.  I feel much better about it now.

[DanielV01]

You're welcome, and I'm glad you are qualifying  for the deduction.

[mvitulli]

It would be helpful if there was some explanation of this calculation in TurboTax itself.  I had to look up the IRS Instructions for the QBI Form and still couldn't understand TT's calculation.  Thanks for you explanation Daniel.