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April 10, 2025
Question

I do not qualify for the qualified business deduction that turbo tax is giving me. How do I remove it?

  • April 10, 2025
  • 2 replies
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    2 replies

    April 10, 2025

    It depends on where it is entered.  There is a QBI section in Self-Employment, Rental Properties and for REITs.  Find the section that you have the QBI, then go to that section and Edit to elect not to add as QBI.  

    Hal_Al
    Employee
    April 10, 2025

    The usual reason for the qualified business income (QBI) deduction mysteriously showing up on your tax return is that you have an amount in box 5 of a 1099-DIV (Section 199A dividends).

     

    This is income from REITs (Real estate investment trusts). Your mutual fund has holdings (investments) in REITs. It qualifies for the QBI deduction. Don't try to remove. 

    The alternative is delete the box 5 amount at the 1099-DIV screen.  The amount is already included in box1, so it gets reported and taxed, even if your remove it from box 5.