On what line does the section 199A deduction come through on for Form 1040?

[dmertz · Accepted solution]

This deduction propagates from the QBI Deduction Summary to the 1040 Worksheet to Form 1040 line 9.

Be aware that the QBI deduction functionality is not entirely present yet and may give bogus results until fully implemented.

[pjn]

Page 2 of F1040, Line 9

[vsimone1950]

It's February 3, 2019 and still no fix on the QBI deduction. What gives???

[jrd311]

I'm not finding any way to generate a deduction on line 9 (Qualified business income deduction) of the 1040 using turbo tax home and business.  Am I missing something?

[dmertz]

The original answer indicating that TurboTax's QBI calculations are incomplete are outdated.  If you are not seeing a QBI deduction, either you have not made the necessary entries or you do not qualify for the deduction.  If you are self -employed, perhaps you do not have any QBI after subtracting the deductible portion of SE taxes, SE retirement contributions and the SE health insurance deduction.

[TaxCTH2018]

Hi Dmertz,

you quote:

"If you are self -employed, perhaps you do not have any QBI after subtracting the deductible portion of SE taxes, SE retirement contributions and the SE health insurance deduction."

I am a sole proprietor with less than 157k biz income and TT shows my 1040 as follows:

line 6:        66,862.

line 7:       39,598.

line 8:       29,013.

line 9:

line 10      10,585.

I am seeing NO entry in 1040 line 9 - I didnt realize the 199A deduction was limited by anything?

I enter 541519 (computer services) as my biz classification which should qualify for 199A?

Any suggestons and/or is there a worksheet or reference where i can manually double check this?

thx in advance

[TaxCTH2018]

same here..did you find a solution?

[dmertz]

The QBI dedution has many limitations.  

TaxCTH2018, the information you've given does not provide any insight as to why you may or may not be eligible for a QBI deduction.  Examine the QBI Component Worksheet, QBI Simple (or QBI Complex) Worksheet and QBI Deduction Summary Worksheet in TurboTax.  If you are using the CD/download version of TurboTax, also examine TurboTax's long-form Schedule C in forms mode and review the Qualified Business Income Deduction Info at the bottom.

[TaxCTH2018]

i worked this one out...ty for responding..

i have another question relating to the new special dep allowance

1) i have already figured the 179 deduction (10k x my 53% use = 5369)
2) I am finding it very hard to enter Special Depreciation Allowance (for a listed property)

-does it go in line 26 column h ?..and would it simply be my biz use % (53%) x $8000 limit?...it seems that the previous column (g) controls the formula for (h) however ? (and i looked at instr which refers you to line 19 computation and that did not clarify)
-could use any advice

ty

[dmertz]

TaxCTH2018, please ask a separate question about the special depreciation allowance.  It's unrelated to the topic of the original QBI question asked in this thread.

[dondant]

QBI deduction came through but I 'm not sure if it applies to me.  I am retired my income consist of SS and my husbands pension.   what generated it. an should I just leave it?

[ColeenD3]

Did you have any dividends or Forms K-1 that might have generated it? Box 5 of Form 1099-DIV reports an amount that can give a QBI deduction.

[pjn]

Hi dondant,

Verify that the pension income was entered correctly and not as trade or business income or other income subject to self employment tax.  Take a look at a copy of the return and see if a Schedule C was generated.  CollenD3 also made some suggestions on places or records you should look at. It appears that is an input error. Also, look at any loss carry forwards that could generate a QBI statment, but with zero deduction for obvious reasons. 

Hope it helps.....