Qualified Business Income Deduction

[rdf]

You need to enter item Z which was an attachment on my k-1.

[JK86]

I posted this while back.  Try this - "All of my investment in this activity is at risk" on 'Describe the Partnership' screen needed to be checked.  And as David explained in the prior page, on 'We need some information about your 199A income' screen, I checked "(business name) has a rental income (loss)" box and entered the Box 2 amount.  This screen is a new one (I think) compared to last year's.  That did the trick in calculating the QBI for me. 

[tigertanaka]

Thanks for this.  Solved my problem.  The CPA who did the LLC returns uses different software and would know zilch about how TT does QBI.   A bit unhappy I needed three hours to solve all of this but this reply was exactly what I needed.

[EBK1]

Finally, got a correct solution. Thanks.

[TerryJ]

My K-1 lists 5 separate  companies related to QBI deduction, but TT Home & Bus version software only is allowing me to place one Company into the calculations, not multiple companies.  How do i get the QBI credit for all 5 companies?

[ericinmaryland]

I am no accountant but wouldn't each company be added to your personal return as a K1? So you are saying that the QBI did not calculate? Perhaps you have exceeded the maximum income? You have to provide way more detail here if you hope to get a useful answer.

[mtwestby]

You should be able to list each K-1 separately for each company.

[TerryJ]

This is an investment partnership K-1, so the pass through of the QBI is coming form 5 different companies my partnership is invested in, so all 5 are included on my K-1, as they should be.  But TT stops after I enter in the info for the 1st Company. 

[TerryJ]

I only have one K-1, an investment partnership. However the partnership invest in multiple companies and is reporting on a schedule to the K-1 5 investment companies with their pass trough of QBI

[DavidS127]

Because your K-1 is reporting Section 199A information generated by the partnership and Section 199A information generated by multiple passthrough entities, you'll need to "split" this K-1 into two separate K-1s for entry into TurboTax.  Enter one K-1 with only the "box" amounts generated by the "main" partnership, and additional K-1s for each pass-through entity with only the "box" amounts generated that particular pass-through entity.   

For all these K-1s, when you begin the K-1 entry use the same identifying information for the "main" partnership that sent you the K-1 (e.g., name of partnership, address, EIN, etc).

If you can't figure (deduce) that "split" from the information you have, you will need to contact the preparer of the K-1 to get those amounts.

Note that when you enter each K-1, you'll encounter the question "Is the business that generated the Section 199-A income a separate business owned by the partnership?" screen, TurboTax is asking if the Section 199-A income was passed through to the partnership sending you the K-1 by another partnership, S-Corp, or trust; versus being generated by the business operations of the partnership that sent you the K-1.  So, on one of the K-1s you enter you will answer that it is from the partnership, and on the others you will enter that it is from the pass-through entity. TurboTax will ask for the name and EIN of each pass-through entity.

[csw74]

My turbo tax does not take into account my qualified business income deduction despite my entry of my S corporation ordinary business income on my Schedule E.  I overrode the "0" on the form 8995 with the correct amount $40986, but it won't allow me to efile!  Wh at is the solution? 

[ericinmaryland]

You will not be able to submit a return that has over-written values. I note you say you have income from your S-corporation. To me that makes you an owner or officer. Either way, you would get a K-1 if you earned that income. If it is passive income, then that is when you use the schedule E. But that is the extent of my expertise.

Turbo tax has made the activation of the deduction very hard as the IRS changed the approach from 2018 to 2019. Since Intuit touts their products as do-it-yourself, I think they are obligated to assist you and I would call them to ask for help. Q&A through the product should be enough. Its is also a possibility that you did not answer a question correctly based upon your circumstances. Again, TT's questions are at times vague and confusing so...call them for direct assistance.

[DavidS127]

You need to enter into TurboTax the "box 17 code V" Section 199A amounts reported on the Statement or STMT that came with your K-1. 

You can do this on special screens in the interview questions, or in the Section D1  and Section D2 of the S Corp K-1 in Forms mode of Download/CD (scroll way down for Section D1 and Section D2). 

If you are using the Forms mode approach, you'll also have to link this S Corp K-1 to a QBI Component worksheet, in Line A of that Section D2, and make sure the other boxes are marked correctly.

For TurboTax Online or Download/CD Step-by-Step:

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:

@csw74

[musicalnotes]

TT tells us we have over 4,000 in QBI deduction but it hasn't shown up in reduced taxes. Can someone explain why this is so? We would like to get our taxes turned in by the 28th so we can get a reduction in our TT fee.

[Irene2805]

The QBI deduction is reported on line 13 of your 1040 form.   

You can preview your 1040 by following these steps:

TurboTax Online

Follow the instructions in this TurboTax Help article: How do I preview my TurboTax Online return before filing?

If you want to preview the entire return: 

1. In the black bar at the left side of your screen, click on TaxTools > Print Center 
2. On the TurboTax Print Center screen, click Print, save or preview this year's return.
3. Mark the box(es) for your federal and/or state return.
4. In the next section, select Just my tax returns (or include the worksheets as well)
5. Click on the View or print forms box. 

TurboTax CD/Download

You can preview your return by going into Forms Mode.  You can not only preview the 1040, but also the QBI Deduction Summary to see how the calculation was arrived at.  Please follow these steps:

1. Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar. 
2. In the Forms in My Return list on the left, click the form you want to review.  The form will appear on the right side of the screen.
3. You can view the form on the screen or you can print a copy by clicking the Print box at the bottom of the screen.
4. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.