Multiple Issues with Form 8995

[liggettforever]

First time doing SCorp income reporting on my own. I'm not sure why I have so many issues on Form 8995 - 

- TT has entered my name and SSN rather than my SCorp business name and EIN. How do I change this?

- It has used an amount greater than the business income I entered through the K-1 (by about $2K). Where is it getting this total?

- How do I enter an amount (loss carryover) in Line 3?

- Why is there an amount in Line 6 when I didn't submit an amount for that category? ($13)

- After I entered 199A information (via Box 17, V, amount left blank), it's now saying I need to fix my return because "no Section 199A income has been entered on Statement A." (I entered info for wages and UBIA)

[DavidS127]

The Form 8995 is a form for your personal, individual tax return (Form 1040).  It is generated when you have eligible business income such as income from an S Corp you own.  The income from the S Corp goes into your Form 1040 when you enter the Schedule K-1 you received from your S Corp.  During the entry of that K-1, you should have entered a code V for box 17, and then a couple of screens later entered the "Section 199A information" from a Statement or STMT (sometimes called a "Statement A") that came with the K-1.

With that background:

1. The Form 8995 should have your name and SSN, because you are the individual filing this form, based at least in part on the income from your S Corp K-1.
2. The Form 8995 picks up the QBI amount from the "source" forms.  You may have QBI from sources other than your S Corp K-1, including another K-1, a Form 1099-DIV box 5, a Schedule C self-employed business, or a Schedule E rental property.  For your S Corp, you would have entered the amounts from the box 17 code V "Section 199A" Statement/STMT when you entered your K-1, on a screen "We need some more information about your 199A income or loss".  But, any income amounts entered there will be reduced by any self-employed health insurance deductions you have.  You would need to look at any "source" forms you have, and also the QBI Component worksheets for these sources, to see the details behind your QBI calculation.  To see those with Online, you'll have to create a PDF of your tax return with the worksheets.
3. If you have a QBI loss carryover from 2018, enter it at Income>>Other Business Situations>>Net Operating Loss/QBI Carryforward Loss.
4. Line 6 would have come from either a Form 1099-DIV box 5, or a K-1 from a Publicly Traded Partnership (PTP) entered in your tax return.
5. What you enter on your box 17 screen doesn't get into the QBI calculation.  You must Continue through the interview and enter your Section 199A Statement amounts on the "We need some more information about your 199A income or loss" screen.  Click the box on a line you need, and other boxes will open up to enter your amounts.  These are the amounts that TurboTax uses in the QBI deduction calculation.

[liggettforever]

Hi @DavidS127, thanks so much for your reply, I really appreciate it. 🙏

- I was able to figure out how to download the returns with worksheets, thank you, this helps a lot! It is showing two QBI worksheets, one for me, one for the K1 SCorp. The one for me checks out (dividend income). The QBI worksheet for the K1 SCorp is not populating my K1 income, and that income is not populating for business income in Section D1 or D2 of the "Shareholder’s Share of Income, Credits, Deductions, etc." worksheet. I believe this is why I'm receiving the error "no Section 199A income has been entered on Statement A." How can I get this populated?

- My self employed health insurance deduction was linked to self employment income, not the SCorp business.

- When I submit the carryover, it is showing up on my Additional Income instead of the QBI/8995, and on page 2 of the Federal Carryover Worksheet instead of under the Qualified Business Income Deduction (Section 199A) carryovers on page 3. How do I rectify?

[DavidS127]

More information on where that "Additional Income" line is located may help resolve that issue.  But, the first thing to do is go back to that Income>>Other Business Situations>>Net Operating Loss/QBI Carryforward Loss section and make sure the entries you made were for the QBI loss carryforward and not something else.

For the QBI not populating on your K-1 QBI sections D1 and D2, see the item 5 in my previous response; here is more detail:

For the Section 199A information associated with box 17 code V, enter the code V when you enter the K-1 box 17 screen, but you don't need to enter an amount.  Any amount you enter there doesn't get picked up in the QBI deduction calculation.

Instead, Continue on, and the third screen after that box 17 screen is "We need some more information about your 199A income or loss" screen.  This screen must be completed with the numbers from your Section 199A Statement or STMT.   When you check the box next to a category on that screen, a place will open up to enter the amounts from the Statement or STMT that came with your K-1.  The applicable category (or categories) on this screen (and the following "Let's check for some uncommon adjustments" screen, if applicable) must be completed in order for your K-1 QBI information to be correctly input into TurboTax for the federal tax return.

Note that any Unadjusted Basis of Assets amount goes on the "....has UBIA of qualified property" line.

To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.

Here are screenshots of the two screens to enter your Section 199A Statement/STMT information:

[liggettforever]

GOT IT!!! Thank you!! I had forgotten to check "Business has ordinary income (loss)." 199A income is fixed. ✔️

The remaining snag is that I'm still not getting the QBI carryforward in the right place (8995, Line3). I did what you said, but there is not an option to designate it specifically as QBI. It's showing up in the Additional Income form Line 8 as "Net Operating Loss." These are the only two steps available in that section:

[DavidS127]

When I checked this in my Download/CD version of TurboTax, I couldn't get the QBI carryover screen to "present" if I entered anything for the NOL first.  If I cleared anything in the NOL boxes on that first NOL screen, then I got the QBI carryover screen.

Try deleting anything in those first NOL screen boxes (sometimes they look blank but a space will register as an entry, so click in there and delete or backspace to make sure).  You may get a question to confirm that you want to delete an Explanation Statement (click yes).  Then, I believe you will get the 2018 QBI carryover loss screen.  If not, try signing out and back in, to see if that will cause the QBI carryover loss screen to "present".

[liggettforever]

That worked! 🙌 

Thanks so much for your assistance!

[jcorbera14]

Hello, I am close to finishing the returns which includes my wife's SCorp. On form 8995, there are 2 entries with the same QBI amount (loss). Why are there 2 entries, line (i) and (ii) for the same thing? How can I remove the second one if it is a duplicate? Any help would be appreciated.

[JamesG1]

Are both amounts the same?  Are both amounts the same as what you reported as box 1 income at the screens Choose Type of Activity and Enter Income or Loss?  Please clarify.

Or did you report somewhere else other than box 1 income?

When entering the S corporation K-1, were you required to enter the one K-1 as if you had received two K-1's? 

There are instances when this is required because the Schedule K-1 Form 1120-S may report income in box 1 and box 2.