Does TT calculate 199A or QBI deduction for S corp? will a business like legal or accounting be eligible for the 199A deduction if gross revenue is less than $30,000?

[dreamkauai]

How do I get the correct information on the 199A worksheet: line 1b? Why, in "error check" does it take me to this worksheet? Do I need to calculate the amount? if so HOW do I do that?

[JulieCo · Accepted solution]

You have a few questions you are asking, so I will go through them in order that you wrote them above:

Yes, TurboTax calculates the 199A deduction, but the calculation is done on the personal income tax return and not the SCorp return.  It is reported on line 9 of the 1040 form.

For legal or accounting businesses to be eligible for a 199A deduction, it will depend upon the taxpayer's taxable income.  If the taxable income is under $157,500 filing single or $315,000 joint, then all business types that are eligible for the deduction will be able to deduct a 199A deduction whether they are considered a specified service trade or business (SSTB) or not. 

Regarding the error you are receiving on the 199A Worksheet, you should not have to enter anything in line 1b unless you have an adjustment of an amount that should or should not be included in the qualified business income amount.  But double check line 4 of the worksheet and see if the SSTB question is answered as Yes or NO, as that may be the cause of the error.  You should be able to mark the Yes or No there on the form being displayed. 

Here is more information on whether a business is an SSTB's:

https://ttlc.intuit.com/replies/7266545

[Tom in Raleigh]

oops - comment submitted in error