Qualified Business Income Deduction

[beyondthebox]

@katinfoco To be clear, you are jumping into this conversation with you own separate issue. 

My guess then is that you bought the Home and Business edition of Turbotax and did something in Turbotax to make the program think you had business information to report.

That said, If you don't have Qualified Business Income you will not get the deduction so don't worry about the form.

[katinfoco]

perused turbo tax for more answers, apparently 

"Some dividends are 199A dividends and will yield a QBI deduction."

I found the "199A dividends" field on my 1099-DIV forms.  Seems like our investments somehow triggered this item, weird.  $ is negligible so will ignore it.

fyi...purchased turbotax deluxe 2020 fed+state

thanks for the replies.

[DawnC]

This deduction applies to Schedule C filers (sole proprietorships and other self-employed businesses), LLCs, partnerships, S corporations, estates, and trusts. Certain rental enterprises may also qualify. Corporations are not eligible.   If you do not have a business reported on your tax return, you probably have REIT dividends reported.   Form 1099-DIV with dividends marked in box 5 qualify for the QBI deduction.   K-1 entries also generate QBI deductions.    

Eligible taxpayers may be entitled to a deduction of up to 20 percent of their combined qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. This component of the section 199A deduction is not limited by W-2 wages or the UBIA of qualified property.   You may as well take the deduction no matter how small.  It is your money, not the government's.  

Do I qualify for the qualified business income deduction?      @katinfoco

[guycowing]

Qualified Business Income Deduction:  check your 1040 form line 13 and line 14.  I discovered after I efiled that TT added my QBI to my taxable income rather than subtracting it.  TT is a mess.  Form 2210 messed up, etc.  Furthermore I don't think they care.

[KCBIZTEAM]

Again this year? @DawnC @turbotax what is the fix here!🙁

[MarilynG]

Click this link for more info on the Qualified Business Income (QBI) Deduction.

If you qualify for the deduction, you'll have Form 8995 in your return, and your deduction will show on Form 1040, Line 13. 

If you can clarify your issue, we'll try to help. 

@KCBIZTEAM

[guycowing]

Yes the deduction shows up on line 13, but it is ADDED to line 12c  instead of being subtracted for a deduction.  End result I get no deduction and instead pay tax on my qualified business "deduction.  And yes TT completed form 8995-A correctly.  There is a software error, this year and last year also.  

[DoninGA]

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@guycowing wrote:

Yes the deduction shows up on line 13, but it is ADDED to line 12c  instead of being subtracted for a deduction.  End result I get no deduction and instead pay tax on my qualified business "deduction.  And yes TT completed form 8995-A correctly.  There is a software error, this year and last year also.  

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The Form 1040 Line 12c is only the sum of Line 12a for the Adjusted Gross Income and Line 12b for the Charitable contributions when taking the Standard Deduction.  How do you see the QBI from Line 13 added to Line 12c?

[guycowing]

Line 14 adds lines 12c ( AGI less charitable contributions) to 13 (QBI) as opposed to correctly subtracting  13 from 12c. to obtain the correct value for line 14.  Line 13 specifically says QBI "deduction", any rational person would subtract line 13 from 12C to obtain the benefit of QBI instead of adding it and not only losing the QBI deduction but paying tax on it.   But TT is not rational.  Whomever is writing their software needs to be fired.  I love the TT advertisement, "taxes done correctly, guaranteed".   I am uncertain if that answers your question of "how do I see line 12c"?        

[DoninGA]

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@guycowing wrote:

Line 14 adds lines 12c ( AGI less charitable contributions) to 13 (QBI) as opposed to correctly subtracting  13 from 12c. to obtain the correct value for line 14.  Line 13 specifically says QBI "deduction", any rational person would subtract line 13 from 12C to obtain the benefit of QBI instead of adding it and not only losing the QBI deduction but paying tax on it.   But TT is not rational.  Whomever is writing their software needs to be fired.  I love the TT advertisement, "taxes done correctly, guaranteed".   I am uncertain if that answers your question of "how do I see line 12c"?        

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The tax code requires that the QBI be entered on Line 13.  Then it requires that Line 13 be added to Line 12c with the result being on Line 14.  Then it requires that Line 14 be subtracted from Line 11 with the result on Line 15 as the Taxable income.

IRS Form 1040 and Instructions -  https://www.irs.gov/forms-pubs/about-form-1040

[guycowing]

Got it, your are correct, my mistake, sorry about that.  THANK YOU for setting me straight.

[owin]

Glitch in the software:

Colorado State forms

  Business

   Qualified Bus Inc Ded Addback

    Learn More click on and no info

    Revisit click on and boom - back to the main menu