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Returning Member
posted Mar 17, 2022 2:11:38 PM

Why is TurboTax calculating QBI deduction?

Hello,

I only have income from W-2, 1099-INT, 1099-DIV & 1099-B for 2021. However, TurboTax is calculating QBI deduction for me, which does not seem right. I found that the QBI amount is showing the gain I got from some treasury notes with code D on the 1099-B. Not sure why it is giving me a QBI deduction on those income. 

Could you please let me know how I can remove those?

Thank you!

0 2 815
2 Replies
Expert Alumni
Mar 17, 2022 2:48:57 PM

Did the asset that you sold generate 199A dividends reported in box 5 of the 1099-DIV?  If so, you may qualify for the deduction.

 

If you can identify the source of the Qualified Business Income, you can delete the form and re-enter to make sure that it has been entered correctly. 

 

The Qualified Business Income Deduction can be generated from one of two components. 

  • The QBI component can result from a sole proprietorship, partnership, S corporation, trust or estate.  The first component would likely be reported on Schedule C, Schedule E, Schedule F or a K-1.
  • The REIT / PTP component can be generated from qualified real estate investment trust (REIT) dividends or qualified publicly traded partnership (PTP) income.  The second component could be reported on 1099-DIV or a K-1.

See also this IRS FAQ.

Returning Member
Mar 17, 2022 2:59:12 PM

No it has nothing to do with dividends. It is just treasury notes. I don’t know why it is getting the QBI deduction calculated. Thanks!