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New Member
posted Jun 3, 2019 1:59:07 PM

Where and How can I enter the QBI deduction?

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16 Replies
New Member
Jun 3, 2019 1:59:08 PM

Is your deduction from  Schedule C or a K-1?

New Member
Jun 3, 2019 1:59:09 PM

K-1

New Member
Jun 3, 2019 1:59:10 PM

Do you have this on your k-1?
The "qualified" income for the QBI deduction is reported on your K-1 in Box 20 code "Z to AD" for Section 199A income if it is related to a Form 1065 (Partnership).  If related to a Form 1120-S (S-Corp), it will be reported in Box 17 code "V,W,X,Y and/or Z".

New Member
Jun 3, 2019 1:59:11 PM

yes I entered what was in box 20-Z; but it does not list this value on the 1040 forms line 9..ie it doesn't seem to carry through

Expert Alumni
Jun 3, 2019 1:59:12 PM

It depends. For starters, the QBI calculation is complex, especially if the individual is above the 157,500 thresholds if single, married filing separately, or head of household or 315,000 if Married Filing Joint.  If your income is above these threshholds, QBI can be reduced or phased out.  But these are the steps needed to help the program calculate QBI correctly:

  1. Under Wages and Income, scroll down to the Subheading Business Income, and select K-1 (partnership).  
  2. On the screen Choose Type of Activity select whether it is Business Income or Rental Real Estate, (if business income, answer questions regarding your stock ownership and Material Participation, if rental real estate, answer the appropriate questions about being a Real Estate Professional, Active Participation, and Special Handling.)  It is also important that the income amounts themselves be reported in Box 1 or Box 2, depending on if it is Business Income or Rental Income.
  3. On the screen Check Boxes That Have an Amount, you should select Box 20 info.
  4. You should see codes Z, AA, AB, AC and AD.  A combination of these codes are identifiers on the K-1  to determine QBI.  (if you do not, this is would be one reason why the QBI does not calculate.  This information must be entered from the information on the K-1 for QBI to calculate).
  5. Select any that apply on the screen Other Situations, and any information to the question Did this business receive qualified payments from a cooperative.
  6. Answer the question about anticipated income on the next screen, We're almost done.  If anticipated income is below the threshold, QBI will calculate after that screen.  If above, you will provide additional information, and QBI will calculate according to the final results of the calculations.

You may find the following FAQ helpful:  https://ttlc.intuit.com/replies/7036528

New Member
Jun 17, 2020 5:21:41 PM

Schedule C

Employee Tax Expert
Jun 17, 2020 5:42:25 PM

After you go through the self-employment section in TurboTax, you will be asked about the QBI questions.   Type in QBI into the search bar and use the Jump to QBI link.  If that does not work, type in sch c and use the Jump to sch c link.    Click on Edit next to your business then scroll down to the bottom and click on Details next to Business Summary (QBI), see image.  

 

@andreworld8

 

Level 3
Jan 30, 2021 5:17:17 PM

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?

New Member
Feb 26, 2022 10:45:42 AM

K-1

Expert Alumni
Feb 26, 2022 11:53:07 AM

If your K-1 has Qualified Business Income that makes you qualified for the deduction, you will see an amount in box 17 with code V.  You should then also have a "Statement A--QBI Pass-through Entity Reporting" along with your K-1.

 

When you input your K-1 information into TurboTax, there are a couple follow-up questions and then TurboTax will calculate your allowable deduction.

Returning Member
Mar 10, 2022 11:57:45 AM

I’m trying to find the statement on TurboTax to indicate I’m using my aggregated rental real estate properties as QBI.  I see that I’m supposed to go to wages and income, elect a K-1 source and scroll to rental real estate. And then enter amounts in box 20.  I’m a little confused about what happens after that?   I obviously don’t get a K-1 bc I’m not a partner in any venture.  If I enter the amounts here, as it going to generate a K-1 and I’m going to pay double the amount from my schedule E and also from this K-1?   

Returning Member
Mar 10, 2022 11:59:33 AM

I’m trying to find the statement on TurboTax to indicate I’m using my aggregated rental real estate properties as QBI.  I see from your answer that I’m supposed to go to wages and income, elect a K-1 source and scroll to rental real estate. And then enter amounts in box 20.  I’m a little confused about what happens after that?   I obviously don’t get a K-1 bc I’m not a partner in any venture.  If I enter the amounts here, as it going to generate a K-1 and I’m going to pay double the amount from my schedule E and also from this K-1?   

Returning Member
Mar 10, 2022 12:10:04 PM

I’m trying to find the statement on TurboTax to indicate I’m using my aggregated rental real estate properties as QBI.  I see that I’m supposed to go to wages and income, elect a K-1 source and scroll to rental real estate. And then enter amounts in box 20.  I’m a little confused about what happens after that?   I obviously don’t get a K-1 bc I’m not a partner in any venture.  If I enter the amounts here, as it going to generate a K-1 and I’m going to pay double the amount from my schedule E and also from this K-1?   
In previous years, TT has calculated the WBI for me on form 8995

even though I’m not a trade or business, I’m just an RREE.  am I correct that if I say I’m a trade or business, that just applies to the 199A ddn and doesn’t turn me into a trade or business for any other purposes like for my Schedula E?

Employee Tax Expert
Mar 10, 2022 1:34:29 PM

@joannalan3bmc

 

Since your QBI relates to Rental Properties, you should start with that section of TurboTax, not the Investment section for K-1s. 

  1. Go to Federal >> Wages & Income >> Rental Properties and Royalties.
  2. For each property listed on your Rental and Royalty Property Summary page, click Edit beside the property.
  3. Go to the bottom of the property summary and click "Done With Rental Property."
  4. Work through the interview pages until you see "Let's see if you're eligible for the QBI safe harbor."
  5. Continue to follow the prompts and answer all questions until you return to the Rental and Royalty Summary page.
  6. Repeat these steps for each property.

Your answers in this section should provide the information needed to aggregate and report your rental business for QBI.

New Member
Apr 12, 2022 8:28:56 AM

I am using turbo tax. I have a $10 QBI deduction but I don't remember entering anything that said QBI. Where would it come from?

Employee Tax Expert
Apr 12, 2022 8:41:12 AM

The QBI deduction allows eligible taxpayers to deduct up to 20 percent of their qualified business income (QBI), plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. 

 

Business owners and beneficiaries with income from a partnership, S corporation, or trust reported on Schedule K-1 are generally eligible for the QBI deduction.