QBI deduction error

Forum|Forum|1 year ago
February 12, 2025
2 replies
4 views

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?

Best answer by SteamTrain

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.

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.

MayaD

Alumni - Intuit

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?

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PlzGiveMePatienceAuthor

Level 2

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.

KrisD15

Level 15

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

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SteamTrain

Level 15

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.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

PlzGiveMePatienceAuthor

Level 2

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

PlzGiveMePatienceAuthor

Level 2

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.

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.