Form 1041 and QBI

[Juan 8]

On my grand daughter's Trust return I am getting a mistake that says "Form 1041: QBI deduction on Form 1041 does not equal to the amount computed on the QBI deduction summary worksheet. Please review on Form 1041, Line 20"

I have not made any QBI deduction on my forms.

What is the problem?

[Anonymous_]

Which type(s) of income did you enter? If you enter Forms Mode, you can check Form 8995 and/or 8995-A, the latter of which is not ready for filing; look for any amounts on the form that appear in your forms list.

[BigIronPgmr]

I am having the same problem on my late wife's trust for our children. There is only one IRS form, a 1099-DIV and that has been entered. I have also entered all information on distributions on from the trust, and TurboTax has created the Schedule K-1. All of the TurboTax "Federal Taxes" steps have been completed and the error message was from the "Federal Review" dialog.

[DavidS127]

A recent TurboTax update should fix QBI issues such as yours.  But, reports are that forms with the QBI income (including QBI reported on Form 1099-DIV and Schedule K-1s received must first be deleted and re-entered.

Note that you don't necessarily elect to make a QBI deduction; some forms have "Section 199A" income that automatically generates a QBI deduction in TurboTax.

[mlachmayr]

That did not work for me.

When I delete my 1099-DIV the error goes away.  When I re-enter the error comes back. (I recently upgraded by TTax)

I'm just going to file with the error.

(Glad to know this is a SW issue and not an issue with my return)

[DavidS127]

Thank you @mlachmayr.

It would be helpful to have a TurboTax ".tax2019" file that is experiencing this issue.  You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions:

For TurboTax Online, click the dropdown arrow next to Tax Tools on the left menu panel, then click Tools under that.  On the Tools Center pop-up, select Share my file with Agent.  When you confirm the request, you will get a box with a token number.   Reply with the token number and I’ll be able to open a TurboTax tax return with your numbers but not your personal information.  That may help diagnose the issue.

For TurboTax Download/CD, on your menu bar at the very top, click “Online” and then “Send Tax File to Agent”.  When you click to send, you will get a pop-up with the token number.  Reply with the token number and I’ll be able to open a TurboTax tax return with your numbers but not your personal information.

[NorbertD]

I've got the same issue, here's the token for my diagnostic copy: 627480.  Just updated my software today, and started the return and entered the 1099 tonight.

[DavidS127]

To resolve your issue with QBI on your Form 1041:

1. Go to Forms mode (icon at top right in blue bar).
2. In the left column, find “Form 1041” and click on it.  The Form 1041 will open in the window.
3. Scroll down to line 20 “Qualified Business Income Deduction”.
4. “Right-click” on the box by the number 20, and select “Data Source”.
5. You will get this pop-up window shown below in a screenshot.
6. Find the number shown next to the QBI Ded Summary Total QBI deduction link, in this screenshot example the number is “86”.
7. Enter that number from step 6 in the line 20 box on Form 1041.

Your QBI will calculate correctly, and you will no longer receive that error message.

@NorbertD

@mlachmayr

[NorbertD]

That worked.  I didn't need to go to Forms though, when I hit "Check Entry" it pulls up form 10410 with box 20 highlighted.  So I right-clicked the box and selected "Data Source", and sure enough there was the number underneath the description.

Seems like an oddly simple and common bug, hopefully you'll get that fixed shortly.  Hope that doesn't mean other stuff is silently broken...