199A QBI Deduction

Forum|Forum|6 years ago
February 7, 2020
4 replies
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After entering REIT dividends from box 5 of 1099 DIV, TurboTax Deluxe created and filled in a Qualified Business Income Deduction Summary worksheet. This is now triggering the message: "If the only 199A income is REIT dividends from one or more 1099 DIVs and your taxable income is over the threshold for your filing status, then you cannot file your return at this time. This will be supported in a subsequent release."

What release? When? Do I need to upgrade to TurboTax Premier or will I get the same message?

Best answer by VictoriaD75

You are receiving dividends from a REIT (Real Estate Investment Trust), which qualifies for a Section 199A deduction. This does not mean you had Qualified Business Income (QBI), but you could qualify for the deduction. REIT dividends are reported on a Schedule K-1 or in box 5 of the 1099-DIV. This requires Form 8995-A, which is expected to be available on February 20, 2020.

Qualified Business Income Deduction

Forms Availability

VictoriaD75Answer

Qualified Business Income Deduction

Forms Availability

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PB11

@VictoriaD75

>> This requires Form 8995-A, which is expected to be available on February 20, 2020.

Will the form be available on Feb 20 on IRS website, or in TT online? Can you please clarify?

VictoriaD75

The QBI deduction is reported on Form 8995. While the form is not expected to be available for filing, it will still appear as part of your return. You can try deleting the form to see if it will allow you to proceed.

From the menu on the left, choose Tax Tools
Click on Tools
Select Delete a Form
Scroll through the forms and click Delete next to Form 8995

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josan333

I have turbo tax premier and same problem. Can't delete either. I do know the info is from Vanguard's 1099-div. Hope they resolve this issue

MayaD

Revisit the 1099 DIV section and clear the entry in box 5 then try to delete form 8995-A.

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ftlech

It's Feb 20 and I still cannot file. Is this something that will automatically update my return when the release comes out? Will I be prompted to enter something?

PB11

I tried to use TT today, and even with QBI deductions, TT proceeded till the payment page. So looks like the issue is resolved now.

IamIntractable

@PB11 I think that depends on the version of the K1. Many of us cannot file because of an error on the K1 that Intuit has yet to acknowledge or explain.

pollyken

My statement lists '5 Section 199a Dividends ......... 65.09'

what do I do with this?

AmyC

Employee

The program takes the amount from your box 5 and creates the QBI deduction for you. The QBI is named for the section 199a dividends. To verify your deduction:

Log into your return
Choose the federal section
On the left, go to Tax Tools

If you have paid for your return, simply choose the Print return option and the forms will appear on your screen for you to view.
If you have not paid for your return: