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Level 1

How to enter adjustments in 199A worksheet?

I'm a business co-owner of 50/50% two members LLC construction company. Does TurboTax  software calculate and fill-in all the sections of the 199A worksheet? With QBI 96,656.- I get on the sheet "Adjusted QBI" same amount. Do I have to calculate 20% from QBI and fill-in in somewhere? 

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Level 12

How to enter adjustments in 199A worksheet?

Not on the business return.  What you need to enter on the business return is how much qualifying income did the business generate for QBI on the personal returns.  They are important figures, becasue without them no QBI calculates on the personal returns.  These figures are:

  • Section 199A income.  This is the net ordinary income or, generally, the net rental income produced by the entity.  If you are filing Form 1065, this will be an entry on Schedule K, box 20, code Z.  For form 1120S, it is Schedule K, box 17, code V.
  • Section 199A wages.  These are the amount of wages the business paid to non-foreign individuals.  (Wages are reported on a Form W-2, not a 1099-MISC).  The amount of wages the business had can help the QBI calculation if a partner/shareholder has income over the initial phaseout threshold of 157,500 for a non-married person or 315,000 if married filing a joint return.  The wages are reported on Schedule K in box 20 code AA on Form 1065 and in box 17 with a code W on Form 1120S.
  • Section 199A REIT distributions.  While distributions from Real Estate Investment Trusts are not QBI, they are added into QBI for Section 199A calculations.  These are report in boxes 6a and/or 6b and again in box 20 code AB on Schedule K of Form 1065, or boxes 5a and/or 5b and again in box 17 code X in Schedule K of Form 1120S.
  • Section 199A Unadjusted Basis Immediately after Acquisition.  The business reports the amount of property that is not fully depreciated out (if using standard depreciation methods, not Section 179 or Special Depreciation deductions).  Along with wages, this information is helpful for those whose income is above the initial phaseout thresholds.  This amount is in Box 20, Schedule K Form 1065, code AC, or Box 17, Schedule K Form 1120S, with a code Y.

The distributive share of each of these amounts will pass-through to each partner/shareholder on their Schedule K-1. TurboTax will help each calculated their QBI on their personal return.  No manual calculation is needed for the deduction. 

4 Replies
Level 12

How to enter adjustments in 199A worksheet?

Not on the business return.  What you need to enter on the business return is how much qualifying income did the business generate for QBI on the personal returns.  They are important figures, becasue without them no QBI calculates on the personal returns.  These figures are:

  • Section 199A income.  This is the net ordinary income or, generally, the net rental income produced by the entity.  If you are filing Form 1065, this will be an entry on Schedule K, box 20, code Z.  For form 1120S, it is Schedule K, box 17, code V.
  • Section 199A wages.  These are the amount of wages the business paid to non-foreign individuals.  (Wages are reported on a Form W-2, not a 1099-MISC).  The amount of wages the business had can help the QBI calculation if a partner/shareholder has income over the initial phaseout threshold of 157,500 for a non-married person or 315,000 if married filing a joint return.  The wages are reported on Schedule K in box 20 code AA on Form 1065 and in box 17 with a code W on Form 1120S.
  • Section 199A REIT distributions.  While distributions from Real Estate Investment Trusts are not QBI, they are added into QBI for Section 199A calculations.  These are report in boxes 6a and/or 6b and again in box 20 code AB on Schedule K of Form 1065, or boxes 5a and/or 5b and again in box 17 code X in Schedule K of Form 1120S.
  • Section 199A Unadjusted Basis Immediately after Acquisition.  The business reports the amount of property that is not fully depreciated out (if using standard depreciation methods, not Section 179 or Special Depreciation deductions).  Along with wages, this information is helpful for those whose income is above the initial phaseout thresholds.  This amount is in Box 20, Schedule K Form 1065, code AC, or Box 17, Schedule K Form 1120S, with a code Y.

The distributive share of each of these amounts will pass-through to each partner/shareholder on their Schedule K-1. TurboTax will help each calculated their QBI on their personal return.  No manual calculation is needed for the deduction. 

Level 1

How to enter adjustments in 199A worksheet?

TurboTax is not calculating any adjustments (199a) for my K-1.  Suggestions?
Level 1

How to enter adjustments in 199A worksheet?

Turbo Tax is not calculating the 20% QBI correct, and where does the credit placed on a 1120S?
Level 2

How to enter adjustments in 199A worksheet?

My Section 199A income is divided between Trade/Business and Pass-Through Entities. What total do I use? Also, in the footnotes, it allocated between SSTB and non SSTB.