How do I enter qualified business income (QBI) from a K-1 into TT? I found no way to do so and I could not override the QBI simple or QBI deduction summary forms? (2024)

• TurboTax Deluxe Online

‎June 4, 20195:23 PM

On TurboTax, you will enter the K-1 information into the Schedule E screen. (To access, type "Schedule E" in the Search box and click on theJump to Schedule Elink). You will proceed to enter the K-1 information as you see it on your K-1. The most important information for the QBI calculation is found in box 20. You must enter the codes Z, AA, AB, and AC (or as many of these codes as you have), or QBI will not calculate. If your K-1 does not contain these codes, you will need to have the K-1s corrected to include this information.

After you have entered all of the information, you will need to answer a couple of questions regarding the nature of the income and your expected income. If you qualify, QBI calculates after that.

One caveat: when using TurboTax Online, these calculations are not as visible as when you use TurboTax Desktop. While not required, you may wish to purchase Desktop software and finish the return there. The Forms Mode available in TurboTax Desktop is advantageous to seeing the QBI calculation. If you wish to go this route, this FAQ gives information on how to do so:https://ttlc.intuit.com/replies/3302260

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It depends on whether the K-1 is coming from an S-Corp or a Partnership?What entity did you receive the K-1 from?

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On TurboTax, you will enter the K-1 information into the Schedule E screen. (To access, type "Schedule E" in the Search box and click on theJump to Schedule Elink). You will proceed to enter the K-1 information as you see it on your K-1. The most important information for the QBI calculation is found in box 20. You must enter the codes Z, AA, AB, and AC (or as many of these codes as you have), or QBI will not calculate. If your K-1 does not contain these codes, you will need to have the K-1s corrected to include this information.

After you have entered all of the information, you will need to answer a couple of questions regarding the nature of the income and your expected income. If you qualify, QBI calculates after that.

One caveat: when using TurboTax Online, these calculations are not as visible as when you use TurboTax Desktop. While not required, you may wish to purchase Desktop software and finish the return there. The Forms Mode available in TurboTax Desktop is advantageous to seeing the QBI calculation. If you wish to go this route, this FAQ gives information on how to do so:https://ttlc.intuit.com/replies/3302260

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I have the same question as sjlocke

You will proceed to enter the K-1 information as you see it on your K-1."

When I jumped to "Schedule E", TT Deluxe shows me a page that says "Income from Rentals or Royalty Property You Own".

Neither of those is applicable to the business income I am trying to enter. So, where does income from an S-corp on a K-1 get marked as QBI?

I have a partnership and in the partnership return I put I qualify QBI, it said basically you would have to mark it on your personal return. So now I have a K-1, which I entered but where does this K-1 get marked as QBI? I dont see an option and I'm not getting any credit for it.

It would be reported in Box 17 Code VSection 199A Information on your K1.

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That didn't actually answer the question.

I entered my K1 info under: "Personal Income; Business Investment and Estate/Trust Income; Schedule K-1"

QBI shows as $0 on 8895 and QBI Component worksheet.

Do I also have to enter the K-1 info a second time by jumping to Schedule E? - or should I have entered it on Schedule E instead of entering as I did?

No you do not need to enter the K-1 information a second time.

From what you described you have entered the K-1 information in the correct place in TurboTax.

@Pabbo

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Thanks DianeC958.

Is it normal (okay?) to manually update Ordinary Business Income and W-2 Wages (from K-1, Box 20) on the K-1 Form in TurboTax Home & Business?

Background:

Although I entered 3 numbers from my K-1 box 20, I noticed in "Forms" that the only number from Box 20 that was coming through in Section D1 was Code AB, UBIA. No 20% deduction was being calculated or applied. code Z, Ordinary Business Income and code AA, W-2 Wages were not flowing through to the Form.

After manually entering the Ordinary Business Income and W-2 Wages in Section D1 on the K-1 Form, a Schedule E was automatically created and the 20% deduction was applied.

After i read this, i logged into my sample test return to see if you had the ability to enter information into Box 20 of the return.Since the boxes were a light brown color, then it is perfectly acceptable to enter a manual update.Manual updates are not always available on the forms and can cause problems when attempting to electronically file.

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