Is this on your personal tax return?
What type of business income is it? Schedule C, K-1?
you need to get to the section on schedule C input form/worksheet. there you provide the info for the QBI deduction to be calculated
please note the for the QBI
schedule C income is reduced by
1/2 the self employment tax
the deduction for self employed health insurance
related retirement plan contributions
Check to make sure your K-1 entry included entry on the screens to enter your Section 199A/QBI information provided with your K-1. These screens are described and show in screenshots later in this post.
For a partnership Form 1065 Schedule K-1, the Schedule A QBI information is entered into TurboTax as box 20 with a code Z.
For an S-corp Form 1120S Schedule K-1, the Schedule A QBI information is entered into TurboTax as box 17 with a code V.
Form a trust Form 1041 Schedule K-1, the Schedule A QBI information is entered into TurboTax as box 14 with a code of I (as in India).
You'll need to put the information on each of the K-1 statements into the categories shown in the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens (see two screenshots later in this post).
Enter the code Z or V or I when you enter the K-1 box 20 or 17 or 14 screen, but you don't need to enter an amount. Continue on, and you'll find the two screens. When you check the box next to a category, a place will open up to enter your amounts. These screens (if applicable to the amount(s) on your statement) 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.
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:
personal return - not able to enter detail from K-1 - this is rental income
Form a trust Form 1041 Schedule K-1, the Schedule A QBI information is entered into TurboTax as box 14 with a code of I (as in India). Does your K-1 have a box 14 with a code I ???
What happens when you enter the K-1 information ... do you not see these screens ?
The software will not do it automatically and does not work. You need to go to the forms page for schedule C and click on the box that you are qualified for the QBI. Do not listen to ANYONE who says it does it automatically. It has not since the 20% was instituted. Are these people working for the IRS and trying to get you to overpay?
Thank you! Do you think this might work for my case also?
Hello I realize this is old thread but I'm currently using 2019 Turbo Tax Small Business. I'm a sole proprietor self employed contracter and only have income on 1099-MISC form. The software is not calculating my QBI. Is there a certain field I should be filling out for this? I do not have an S Corp or partnership etc for K-1 form.
I am in the same situation, sole proprietor running a DBA, no corporation or LLC. The QBI is designed for pass-through businesses like mine and presumably yours. It is up to you to make the legal determination as to whether you qualify for the QBI but right at the top of the Schedule C form (which you should be filling out if you have a business) is a box for you to click to enable the QBI.
However, I would not be using the 2019 program to fill out my 2020 taxes. I am not a tax professional and have no idea what has changed between 2019 and 2020 but I do know that tax code can change and I would not risk using an old program. I do recall when they child tax credits dropped annually and using the old form would have given you too high a tax credit.
Ok thanks for your help. I will give that a try. I do qualify for the QBI as it was on my previous return, but I didn't use Turbo Tax software that time, so it may be just a bug with their software. I'm going to try checking the box on Schedule C form.
Perhaps all of the questions for the Qualified Business Income Deduction have not been answered? Did you make these entries?
Under Here's your self-employment income info, scroll down to Qualified Business Income. Click to the right.
At the screen How much of your work took place within the US?, click All or most of this work.
At the screen Was any of your work for a former employer?, click None.
See this TurboTax Help.
Ok I think I found the problem on form 8995.
Form 8995
Field 10 qualified business income shows the correct amount. 20% of income for example 3,700
Field 11 taxable income before qualified business deduction. A very low number, example 300.
My question is Field 11. Is very low and I don't know why. It should be 20% of 3,700? Turbo tax instead is giving me only a QBI of 20% of Field 11. Not Field 10.
James. Where can I find the screen you are talking about?
Please let me know what I have to click in the Turbo Tax program to get to this screen.
You mentioned you are using the 2019 TurboTax Business software. That software is only for corporations and multiple member LLCs and is only for use in preparing 2019 returns. You have to use a 2020 product to complete a 2020 return - and you need Home & Business for a sole proprietorship. The 2019 software will correctly calculate your QBI deduction, but the 2020 software is not yet up to date for the QBI deduction as the forms have not been all finalized yet.
Using the 2019 Form 8995, your QBI is found on Line 15, which is the lesser amount of line 10 or 14. The deduction is limited to the amount of Line 11 (less capital gains), so if Line 11 is a low number, your QBI deduction will be low as it is 20% of that number. You are describing a situation where your taxable income is lower than your qualified business income.
The deduction is 20% of either taxable income (minus capital gains and dividends) or the QBI, whichever is less. @TaxUser134
Is it still the case that the turbotax 2020 software has not been updated to accommodate QBI? Although I answer all questions line 11 on 8995 is showing a value of 0. This is a pass through LLC but it seems like others are also having the same issue.
These FAQs will provide more information.
This Turbo Tax FAQ will provide information on qualifications.QBI Qualifications
Surprised that you're getting the Qualified Business Income (QBI) deduction? Here's what might be going on: QBI Guidelines
I'd like to confirm this as well. The 2019 QBI Deduction was not automatically calculated properly on our Premier 2019 Turbo Tax but it did automatically calculate properly on 2020. Be sure to follow the manual revision to this in the forms area as mentioned in order to actually get the QBI deduction to work in 2019.
What kind of income(s) do you have that would be generating a Qualified Business Income Deduction (QBID)?
The Qualified Business Income Deduction can be generated from one of two components.
You may view the QBID calculations on IRS Forms 8995 or 8995-A to see how or if your calculations were made correctly.
You can review the 1040 in TurboTax Online by following these directions.
You can print or view your full tax returns prior to filing after you have paid for the software.
See also this IRS Publication.
I had a large QBI deduction in 2019 and my 2020 return won't even calculate it. My income is nearly the same, and according to IRS instructions I meet the criteria. Tried opening the QBI worksheet and inputing data there, but it won't accept data. TurboTax's site says "QBI is calculated automatically" - but it's not. They also say the form will be released by IRS on 5 Feb and it's now Mar 22. My desktop version says "no updates needed."
Can't get anybody to talk to me at TT. This is the last year I buy TurboTax. And I've been buying it for over 20 yrs.