Where do I see this in TT online 2018? "New 20% Qualified Business Income (QBI) Deduction for Pass-through Entities"

[VolvoGirl · Accepted solution]

The new 20% QBI deduction is available to Sch C filers and when the program is fully updated sometime late January at the earliest ... you will see the deduction happen automatically. 

The new section 199A deduction propagates from the QBI Deduction Summary to the 1040 Worksheet to Form 1040 line 9.

What is the new 20% QBI Deduction
https://ttlc.intuit.com/questions/4499030-what-is-this-new-20-business-deduction

[dmertz]

Although the QBI deduction calculations in 2018 TurboTax are presently more functional for Schedule C filers than for those who receive pass-through business income on a Schedule K-1, it's not yet entirely functional even for Schedule C filers, particularly if your AGI is under the $315,000 (MFJ) or $157,500 (others) threshold.  Particularly if your AGI is under the threshold, do your own calculation to confirm whatever TurboTax comes up with.

[walker5914]

Thank you so much!  Just trying to get ahead of the game called tax season!

[byrne_bee]

Will TT let us know when it is fully functional?  Is it not fully functional all across the board for all tax software or is this an issue specific to TT?  

[byrne_bee]

It is the only thing holding up my filing through TT- the link just keeps noting the form hasn't been fully approved.

[ring0072]

I am wondering how we are sure that we answer the turbo tax questions re:  QBI accurately if we are indeed providing 1099 services for a former employer, but we overcome the presumption that this is wages.  All I can see to do in order to "requalify" for me for the QBI deduction is to answer the question "is this for a former employer?" in the negative.  This is not accurate, but has the effect of requalifying me.  Please advise.

[realestateholder]

The 20% QBI (Section 199A deduction) has gotten more clarification from the IRS - See IRS Notice 2019-07 for an update.

[rmackowsky]

When I click on Qualified Business Income Deduction Summary in the topic list, it instead takes me to Health Insurance, which is the next topic in the list. I see no way to get to QBI worksheet or topic, and the deduction is clearly not being calculated. So I assume TT has not yet been updated. It is January 30th - when will QBI work in TT for S-Corp? I'm expecting a substantial refund and would like to get it going.

[cleverlyengaged]

I am actually seeing that it is calculated rmackowsky. What you need to do, is completely finish your business income section and click continue. There should be no "review" prompt or warning. TurboTax will then ask if the work you performed for your self employed job was in the United States. After clicking yes, you'll see your discount automatically applied if your industry is included in the QBI deduction (mine was marketing consulting).

I never found a worksheet either, but I assume it is the QBI being applied. My refund went from $1500 for federal to $3500 for Federal as soon as I finished the business income and expense section of TurboTax.

[dmertz]

Apparently that function of the topic list isn't implemented, I'm not sure such a section of TurboTax even exists.  All of the QBI entries are made while stepping through the sections for sole proprietorships, farm businesses, Schedules K-1 (Form 1065) and Schedules K-1 (Form 1120S).  I've gone through each of those using the latest release of TurboTax and have had TurboTax create all of the necessary linkages and populate TurboTax's QBI sections of Schedule C, Schedule F, Schedule K-1 (Form 1065) and Schedule K-1 (Form 1120S).  Previous versions of TurboTax didn't establish all of the linkages and ask all of the necessary questions in each of these sections, so it's necessary to go back an revisit all of the pages associated with your particular pass-through entity.  TurboTax then uses the information to populate the QBI Component Worksheet, QBI Simple Worksheet (if needed) and the QBI Deduction Summary Worksheet.  So, if anything, the only thing missing seems to be a way in step-by-step mode to view the results of the QBI Deduction Summary Worksheet.

I think that the people who are not seeing a result on Form 1040 line 9 just haven't gone back through the business entity entry to allow TurboTax to bring the QBI entries and linkages up to date.  For Schedules K-1, the appropriate Other information entry for Section 199A income needs to be present on the Schedule K-1, otherwise TurboTax won't know the QBI amount being passed through from the partnership or S corp.

[kalispell9]

I followed the previous comments and worked my way through the questions as though I was entering the Sole Proprietorship information the 1st time and simply hit continue a few times on the various issues.  At the end, it did update the Line 9 number.  This was a rough-out estimate for me.  I will need to enter the actual numbers from all my income sources once received, which will likely occur late March.  Thanks to those that discussed their experience.

[kristie]

I use other Softwares (Drake and UltraTax) and they are not updated yet from the final regs released two weeks ago.  Ugh, very frustrating.

[diabolicsavior]

I am not getting prompted for the QBI for my K-1 either on TT Online and it's clearly not being calculated. I've deleted and started over multiple times. This is driving me crazy... I get that they were waiting for regulations to updated the calculations, but we've known about this for ages now. The fact that there isn't a section under the Deductions section of TT Online so that we can quickly address this issue is infuriating. I've been using TT for almost a decade, and this is the first time where I'm considering looking elsewhere.

[rlp2451]

"Elsewhere" doesn't have it yet either.   HR Block says February 15th.