Question

I have k-1 income. Why am I not getting a 199a qualified business income deduction?

Forum|Forum|7 years ago
June 4, 2019
2 replies
0 views

My husband and I have a business reporting as a partnership. Some answers here say they QBI deduction hasn't been implemented yet. How can we tell when it is available? Shouldn't that be posted somewhere? Or maybe it's functional now and I'm doing something wrong.

TurboTax Deluxe Mac

J

JulieCo

Employee

The 199A Qualified Business Income (QBI) deduction calculation should be working, but note that it is done behind the scenes as there are many variables, plus three taxable income level thresholds, in the calculation. Therefore, if your K-1 (1065) form has an amount in box 20 with a code of one or more of Z to AC, those are the amount(s) that are needed for the QBI deduction calculation. This deduction will be calculated once all of your K-1 information is entered, meaning you must get entirely through the K-1 section for the calculation to trigger (as long as there are amounts in box 20 with the codes listed).

The 199A QBI deduction is reported on line 9 of your 1040 form. In TurboTax Home & Business, you can change to FORMS mode to see your 1040 form, plus the supplemental schedules that will show the 199A QBI deduction calculation.

Also, please note that at taxable income under the the lowest threshold level (under the threshold of personal taxable income of $157,000 single and $315,000 joint), the QBI is calculated as EITHER 20% of your qualified business income (which is self employed business profit less self employment taxes, self employed health insurance and/or self employed retirement, etc) OR 20% of your personal taxable income less capital gains/dividends, whichever is LESS.

Here is more information on the 199A QBI deduction:

https://ttlc.intuit.com/replies/7019998

Here are steps to switch to FORMS mode:

https://ttlc.intuit.com/replies/3339205

See the Box 20 codes for the 199A deduction for the 1065 K-1 in the attached screenshot below:

[Edited 2-19-19|4:11pm]

I

inquiring-mindAuthor

Thank you, Julie, for the speedy reply! The box 20 code is AG. I completed the entire K-1, but it did not trigger the worksheet. (I clicked on forms and it was blank -- didn't even have the name of my business.) What else could be the problem? Thank you in advance.

J

J LUIS CALLEJA

I HAVE $ 14500.00 ON PROPERTY TAX AND ONLY GET CREDIT FOR $ 10000.00 WHY

J

JamesG1

IRS form 8995 will be available in TurboTax products February 20. Please see here.

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R

Reebs

I am having the same problem with a K-1 from a Trust. Form 8995 is available in TurboTax currently. Line 9 on the QBI Deduction Summary does include 199a income from 1099-DIV, but not from K1s. However, the data source does show the amount that should be included. Spent hours with Support, but their solution was to override rather than fix the problem. I was told that 8995a is what is being released on the 20th, but that doesn't seem to be the issue where K1s are not included in the QBI Deduction Summary Form.