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Level 2
posted Feb 12, 2025 11:45:26 AM

QBI deduction error

My husband has about $5 in box 5 of a 1099-DIV identified as 199A, which apparently triggered the QBI deduction. However, that deduction is $93, which seems wrong in view that the only basis is that $5. What’s wrong?

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1 Best answer
Level 15
Feb 12, 2025 2:36:14 PM

If you are sure, you didn't get any $$ from a PTP, on a form K-1..

Then you need to go back to the Interest and dividends section and Edit every 1099-DIV you find there to see what's in each one.

 

Or...last resort....

1)  delete every 1099-DIV you find there...

2)  Then check to see if anything remains on the Form 8995 on lines 6 or 8.

3)  Then re-enter every 1099-DIV again Manually, don't import, don't upload picture or PDF file.  Just enter every one manually using each paper copy of a 1099-DIV you have in your possession.

12 Replies
Expert Alumni
Feb 12, 2025 11:51:50 AM

Did you receive Schedule K1?

Income from a partnership, S corporation, or trust reported on Schedule K-1 are generally eligible for the QBI deduction.

Qualified Business Income (QBI) deduction?

Level 2
Feb 12, 2025 12:49:11 PM

No, none of those. I’ve spelunked everything like that. The absolute only thing that seems relevant are the elements of the $5 under the 1099-DIV in box 5. 

Expert Alumni
Feb 12, 2025 12:51:48 PM

To clarify, no business income, and no carry-over from 2023? 

Level 2
Feb 12, 2025 1:00:17 PM

Right. I wouldn’t have come on here with the issue if I had identified any of those—I did my research and looked at everything possibly relevant. There is no other basis for it besides that $5 on the 1099-DIV.

Andrea

 

Level 15
Feb 12, 2025 1:03:00 PM

Did you actually edit that 1099-DIV to make sure only $5 was in that box?

 

Occasionally the decimal point is missed, or a comma entered by mistake, resulting in the box showing $500 or $5000 instead...AFTER you left that page the first time you entered it.

Level 2
Feb 12, 2025 1:08:28 PM

{sigh} YES YES YES. I checked EVERYTHING. It states 

Level 2
Feb 12, 2025 1:33:21 PM

Still no solution. It looks like TurboTax goofed.

Level 15
Feb 12, 2025 1:51:11 PM

@PlzGiveMePatience 

 

See if you can print out the Form 8995.

 

The details of what went into it all, to give you that $93 should be on that form.

Level 2
Feb 12, 2025 2:17:56 PM

You’re right. It is on that form. But I don’t see how it gets there. The form reports (line 28) “Qualified REIT dividends and publicly traded partnership (PTP) income of $465. I can’t see anything that shows that and clicking on the amount doesn’t take me anywhere.

Level 15
Feb 12, 2025 2:25:24 PM

(line 28?....line 8?)

 

Nothing on line 7?

all on Line 6?

 

Level 15
Feb 12, 2025 2:36:14 PM

If you are sure, you didn't get any $$ from a PTP, on a form K-1..

Then you need to go back to the Interest and dividends section and Edit every 1099-DIV you find there to see what's in each one.

 

Or...last resort....

1)  delete every 1099-DIV you find there...

2)  Then check to see if anything remains on the Form 8995 on lines 6 or 8.

3)  Then re-enter every 1099-DIV again Manually, don't import, don't upload picture or PDF file.  Just enter every one manually using each paper copy of a 1099-DIV you have in your possession.

Level 2
Feb 13, 2025 6:04:28 AM

OK. I found the basis for the $465 amount in the computation. Comes from Section 199A dividends, combining both mine and my husband’s VG 1099-DIVs. So the $93 deduction now makes sense. 

THANK YOU for sending me to scrutinize the DIV reports. The $5.63 was the 199A dividends only on my husband’s DIV, all the rest of the $465 were on my DIV, which I hadn’t considered, since it had appeared the system was still considering that he was a consultant as he had been last year. So my oversight in having those blinders on. Thanks again.