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New Member
posted Jun 6, 2019 12:55:20 AM

Why is TurboTax giving me a QBI Deduction ($10) when I do not own a business and am not self employed?

I report income from W-2, 1099-DIV, 1099-INT, 1099-B,1099-R and SSA-1099.

In my federal deduction/credit summary, TurboTax Premier shows a $10 QBI deduction, even though I am not a business owner or self-employed, and did not have income reported on a form 1099-MISC.  Why would I be entitled to this deduction, and if I'm not, how do I get rid of it?

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1 Best answer
Intuit Alumni
Jun 6, 2019 12:55:26 AM

 Eligible taxpayers may also be entitled to a deduction of up to 20 percent of their combined qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. This component of the section 199A deduction is not limited by W-2 wages or the UBIA of qualified property.

Individuals, trusts and estates with qualified business income, qualified REIT dividends or qualified PTP income may qualify for the deduction. In some cases, patrons of horticultural or agricultural cooperatives may be required to reduce their deduction.

13 Replies
Level 3
Jun 6, 2019 12:55:23 AM

Do you have rental income?

New Member
Jun 6, 2019 12:55:25 AM

No rental income. Upon further research, I think it is due to a REIT dividend in one of my investment portfolios. Wasn't clear to me in TurboTax when I searched on QBI deductions that I would be eligible for a deduction based on this.

Intuit Alumni
Jun 6, 2019 12:55:26 AM

 Eligible taxpayers may also be entitled to a deduction of up to 20 percent of their combined qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. This component of the section 199A deduction is not limited by W-2 wages or the UBIA of qualified property.

Individuals, trusts and estates with qualified business income, qualified REIT dividends or qualified PTP income may qualify for the deduction. In some cases, patrons of horticultural or agricultural cooperatives may be required to reduce their deduction.

New Member
Feb 4, 2021 2:50:55 PM

I do and it stated I was receiving a $2600 QBI credit and I’m trying to figure out if I did something wrong or I am suppose to receive this just for having a rental property? 
any advice would be helpful.

Returning Member
Feb 3, 2022 2:07:21 PM

Why do I have a credit for $159?

Expert Alumni
Feb 3, 2022 2:37:31 PM

You are correct that the Qualified Business Income deduction allows owners of businesses to deduct up to 20 percent of their qualified business income.  However it also allows a deduction of 20 percent of qualified real estate investment trust (REIT) dividends, and qualified publicly traded partnership (PTP) income.  Have you received any dividends from REITs and PTPs?  If so, your QBI deduction is likely the result of this type of income.   

 

Regarding your $159 credit, we need some additional information from you about this credit.  Can you tell us to what it relates?  For example, is it an educational credit, a dependent credit, or is it the earned income tax credit?  

Returning Member
Feb 6, 2022 12:48:14 PM

I do not know why TurboTax is giving me a deduction of $159.

Returning Member
Feb 6, 2022 12:50:10 PM

?I am not aware of having any income that would qualify me for this deduction.

Level 15
Feb 6, 2022 12:51:15 PM

Did you enter any 1099Div or K-1 forms?   It can come from those.

Returning Member
Feb 6, 2022 12:51:21 PM

I do not have any of these credits.

Returning Member
Feb 6, 2022 12:52:26 PM

Yes i entered 1099-DIv forms.

Level 15
Feb 6, 2022 12:53:39 PM

What line is the 159 on?  Before filing,  You can preview the 1040 or print the whole return

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-filing/00/26160

 

 

New Member
Apr 13, 2023 8:18:12 PM

Very helpful, thanks. My qualification I realized is that I had invested in quite a few PTP/publicly traded partners, I.e. companies that pay dividends. Yay..another benefit of doing so!