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JB9
Level 1

Why did turbotax assign a QBI deduction (1040 line 9)?

When I drilled down to the QBI deduction summary page, it appears the deduction is linked to REIT dividends. However, I provided no information that I'm aware of that would have prompted this. There is also no schedule C. The only possible place is dividend information, but how would TT know there is (or isn't) an REIT involved? How can I find the source of this deduction when I answered no questions about QBI or REIT myself?

1 Reply
JulieCo
New Member

Why did turbotax assign a QBI deduction (1040 line 9)?

If you had an amount in box 5 of a 1099 DIV form, the QBI deduction (Section 199A) would calculate.  See more information below:

Per the IRS recently released Notice 2019-07, the following is a definition of the income included in the QBI deduction calculation: 

Congress enacted section 199A (the Qualified Business Income Deduction) to provide a deduction to non-corporate taxpayers of up to 20 percent of the taxpayer’s qualified business income from each of the taxpayer’s qualified trades or businesses, including those operated through a partnership, S corporation, or sole proprietorship, as well as a deduction of up to 20 percent of aggregate real estate investment trust (REIT) dividends and qualified publicly traded partnership income.


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