Qualified Business Income Deduction

[johnnymikeg]

I believe that I should qualify for the QBI deduction but turbo tax is showing my deduction as "0".  What info needs to be on my K-1 that would allow me to qualify?  I'm afraid that my K-1 may have been inaccurately prepared (possibly using the wrong boxes).

Thanks.

[Anonymous_]

Which type of K-1? 

There should be a 199A code if the K-1 was properly prepared and it was warranted.

@Mike9241 

[johnnymikeg]

Where do I look to see if there's a 199A code?

[Anonymous_]

Line 20 on a 1065 K-1

[Anonymous_]

Line 17 on a K-1 1120-S

[johnnymikeg]

Sorry...this is form 1065 K-1

[Anonymous_]

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@johnnymikeg wrote:

Sorry...this is form 1065 K-1

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Line 20 with a Z code.

[johnnymikeg]

ok. thanks.  So line 20 has code "z" but no number.  It just says "stmt".

when I look at what I believe to be the statement, it shows one number for ordinary business income and a very different number under UBIA of qualified property.  Do I use one of these numbers?  If so, which one?

[Anonymous_]

Yes, you enter those figures into the program after you enter the K-1.

[johnnymikeg]

I entered those numbers and still no QBI deduction.  Also, while statement A shows the ordinary business income, I don't see that it shows my personal income.  (Though I have guaranteed payments and self-employment earnings (boxes 4 and 14), neither of those show up on statement A.)  Could that be the problem?

[Anonymous_]

If you are using a desktop version of TurboTax, enter Forms Mode and look at your Qualified Business Income Deduction Summary.

[johnnymikeg]

ok.  I opened the summary but I'm not sure what I'm looking for.

[Anonymous_]

Also look at Form 8995 for the ordinary business income figure.

[Anonymous_]

See https://www.irs.gov/instructions/i8995#en_US_2022_publink1000294645

For who can take the deduction.

[johnnymikeg]

Yes...I appear to be eligible for the deduction.  I have received the deduction for the same job/same type of income in past years.