I have k-1 income. Why am I not getting a 199a qualified business income deduction?

[Reebs]

It is from an Trust K1.  Just checked today after updating TurboTax Deluxe and the issue is still there.  The QBI REIT Dividends are not added to the QBI Deduction Summary line 9 even though the data source for that line shows the REIT Dividend amount.  Very frustrating.

[pbhollinger]

I have a K-1 Box 20 - Z amount, but Turbo Tax business is not transferring the amount to Form 8995. You can override the line on Form 8995, but then TTB won't let you e-file the return. Right now the only solution is to override and then file by mail.

[DavidS127]

The issue with REIT Section 199A dividends reported on a trust Form 1041 Schedule K-1 is being worked on. I will update you when the issue has been resolved.

[Edited 03/02/2020|8:32am PST]

@pbhollinger

@Reebs 

[Reebs]

Thank You!  You are the first one to admit it was an issue and that it will be worked on.  I am anxious to learn when it is fixed.

[DavidS127]

For the Box 20 code Z issue, note that it is very important to Continue through the K-1 interview after you have entered your value for box 20 code Z.  Enter the code Z when you enter the K-1, but you don't need to enter an amount.  Continue on, and there is a screen near the end of the interview titled "We need some more information about your 199A income or loss".  This screen must be completed in order for your box 20 code Z information to be correctly input into TurboTax.

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.

@pbhollinger

[DavidS127]

I believe updates to TurboTax since 3/10/2020 will resolve your issue with REIT/Section 199A dividends reported to you on your trust Form 1041 K-1.  

TurboTax Online will be updated when you sign in.  If you are using TurboTax Download/CD, check for updates (menu at top, Online>>Check for Updates).

@pbhollinger

@Reebs 

[YJY]

I appreciate your response for this deduction in f1040. But one of my trust invested in a real estate partnership and received K-1 indicating QBI in box 20 Z. I entered exact number to the fiduciary return using TurboTax Business. But I can't verify whether it is getting deduction or not. How and where can I verify in f1041?

[YJY]

I have a same issue with my fiduciary return f1041 and posted. I would appreciate very much if I can get a notice when this problem is resolved.

YJY

[DavidS127]

Go to Forms mode in TurboTax Business (icon top right in blue bar) and find the Form 1041 in the column on the left.  Click on that form, and line 20 will show your QBI deduction. Click on the line 20 box and then click the magnifying glass icon, and it will open up the QBI Ded Summary showing the source of the QBI deduction calculation.  Click or "right-click/Data Source" on the amounts in the QBI Ded Summary to find the source of each of the amounts.

Also, find the individual K-1 forms received by the trust.  On each of those forms, scroll down to find the "B1 Qualified Business Income Deduction - Statement A" and "B2 Qualified Business Income Deduction Worksheet" sections to "track" the Section 199A amounts for the K-1 you entered.

[Katy]

Is this also an issue with 1040 forms.?  I did an over ride on my QBI Summary because I do NOT qualify for the deduction.  Now I cannot efile either.  I'm waiting a couple of days to see if this will be fixed.

[KrisD15]

Why do you say you do NOT qualify? Did you report dividends? 

QBI

[RWIMatt]

I e-filed on Feb 8.  One of my business partner's CPA's just informed me that Box 20 is blank on our K1's, and therefore we're missing out on the QBI deduction.  In reading through this forum, it appears there was a problem with TurboTax in early Feb that wasn't disclosed.  How do I resolve now?

[Katy]

In my case, TT was trying to give me the QBI credit and my business did not qualify.   I resolved my issue by calling TT customer service (which was great by the way).  

[drs1993]

My K-1 has an amt for 20Z1, Z2, & Z3, totaling a meager $6. But Turbotax Home & Business won't accept the entry under Part III, line 20. It shows as needing attention, or as an error.  How can I resolve this? I tried to delete it but that doesn't work to resolve the red error "!". Please help.

[DavidS127]

Enter the code Z when you enter the K-1 box 20 screen, but you don't need to enter an amount on that screen.  Continue on, and you'll eventually find the screen  "We need some more information about your 199A income or loss".  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. 

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.

Note that if your K-1 is reporting separate businesses as the source of the Section 199A amounts, (e.g, some from the partnership, and some passed to the partnership from another entity) you'll  need to enter a separate K-1 for each entity.  Report on the respective K-1 forms only the amounts for that entity.  TurboTax asks about this during the interview, i.e., "does the Section 199A come from this business or another entity?".

Here are the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens where you enter the information from your K-1 Section 199A Statement/STMT: