Have a non-zero Qualified Business Income Deduction on Form 1040 while Form 8995-A is not filled out

[renniez]

Hi,

My return was rejected with the reason being "R0000-204 - If 'QualifiedBusinessIncomeDedAmt' in the return (1040, 1040NR, 1041) has a non-zero value, then one and only one Form 8995 or Form 8995A must be present in the return.".

When I check my form, I have a $44 Qualified Business Income Deduction. However, the return includes an empty Form 8995-A. Can someone help me

1. Get the Form 8995-A filled out, or

2. I am happy to give up the $44 Qualified Business Income Deduction. But I can't find a way to do so. 

[DeanM15]

Do you also have a Form 8995 in addition to the Form 8995-A?

If you do, I would delete the empty Form 8995-A and see if that solves your problem. If the Form is doing anything for your it should be filled out with information. 

[luochong]

I have the same issue. Today both my federal tax return and state tax return were rejected with the following reasons:

R0000-205 - If 'QualifiedBusinessIncomeDedAmt' in the return (1040, 1040NR, 1041) has a non-zero value, then it cannot be more than the sum of Form 8995-A, 'DPADSect199AGAllocAgricHortAmt' and the lesser of the QBI Limitation or TXI Limitation.
R0000-204 - If 'QualifiedBusinessIncomeDedAmt' in the return (1040, 1040NR, 1041) has a non-zero value, then one and only one Form 8995 or Form 8995A must be present in the return.

When I check the pdf forms, there was indeed no 8995 or 8995A form, but only a "Qualified Business Income Component Worksheet".

Is this a bug of Turbotax? Do I have to pay $29.99 again for e-filing the state tax?

[renniez]

Sad to see I am not alone here. I ended up fixing the issue by explicitly making the business income not eligible for the QBI deduction. If you'd still want that deduction, one viable solution would be to fill in the 8995 form manually and file by mail.

And yes, I agree this is a software bug.

[luochong]

Thanks so much for the tips on how to resolve. In that case, we should get some kind of refund from Intuit 😉

[luochong]

After giving up the QBI deduction, my federal tax return was also accepted. But that means I have to pay several hundred bucks more tax.

[DavidS127]

You can amend your tax return to claim the QBI deduction for which you are eligible.

The "flow" of the QBI calculation depends on the source of the QBI (Schedule C, Schedule E rental, Schedule K-1, or Form 1099-DIV), but in general the flow is from the source to a QBI Component worksheet to the QBI Ded Summary to the Form 8995/8995-A.  By looking at those forms, you can usually diagnose "what happened" in your QBI deduction calculation.

During the preparation of your amended return, provide the details about source and what you are "seeing" in those forms and the Community or TurboTax Customer Service will be able to diagnose your issue.

You do not pay again to re-submit a rejected e-file, nor to file an amended return.