How to delete Qualified Business Income deduction (Form 8995) from turbotax online?

Forum|Forum|3 years ago
April 14, 2023
1 reply
0 views

I have a rental that is managed by PM, so I definitely put in less than 250 hours per year. So I do not think I am qualified for QBI. So when I was asked the three questions:

"Do you want to take the QBI safe harbor?"

"Is this Qualified Business Income?"

"in 2021, did you have any activities... had income attributable to SSTBs",

I put all negative answers. But at the end I still got several dollars QBI deduction and form 8995. How should I delete these?

TurboTax Premier Online

mglauner

If you're using TurboTax Online, go to Tax Tools > Tools in the left-side menu, then choose 'Delete a Form' from the pop-up screen.

Delete Form 8995 and any other QBI Worksheets.

If the Form 8995 comes back into your return, your QBI deduction could also be related to a Schedule C, a K-1, or a 1099-Div entry.

If this applies, here's more info on Why Am I Getting a QBI Deduction.

@fat-guy

fat-guyAuthor

Thanks. Finally found out I do have $15 section 199a dividend in fidelity 1099-div, which generates $3 deduction in Form 8995. I know this is favorable to me, but is it ok to delete this $15 dividend and not take the deduction? I just do not think $3 is worth for extra forms and involvement in sth related to "business". Will IRS care about this "mistake" even if I opt to take less deduction?

JohnB5677

No, the IRS has a rule about the accuracy of tax returns.

You must make every effort to include all income in your tax return.

However, your tax return must be "substantially correct".
The IRS defines this as: "For individuals, a substantial understatement of tax applies if you understate your tax liability by 10% of the tax required to be shown on your tax return or $5,000, whichever is greater."