Where do I enter a Qualified Business Income (QBI) Deduction (Form 8995)?
Generally, you're allowed a deduction of up to 20% of your net qualified business income (QBI) plus 20% of qualified real estate investment trust (REIT) dividends. Your deduction may be limited if your taxable income is over $197,300 ($394,600 if married filing jointly or $197,300 if married filing separately).
Enter your business income and expenses as usual, and we'll ask you questions needed to determine your QBI deduction. Depending on your type of business, this is where you can enter your QBI information:
Business (Schedule C)
Menu Path: Income > Business / Rental Income > Business Income (Schedule C)
Enter your business information and continue until you get to the Your Business screen. From there you can click on the Qualified Business Income Deduction item (under Miscellaneous). You can enter your QBI information on the Qualified Business Income Deduction screen.
Rental
Menu Path: Income > Business / Rental Income > Rental Income (Schedule E)
Enter your rental information and continue until you get to the Your Rental screen. From there you can click on the Qualified Business Income Deduction item (under Miscellaneous). You can enter your QBI information on the Qualified Trade or Business screen.
Farm (Schedule F)
Menu Path: Income > Business / Rental Income > Farm Income (Schedule F)
Enter your farm information and continue until you get to the Your Farming Activity screen. From there you can click on the Qualified Business Income Deduction item (under Miscellaneous). You can enter your QBI information on the Qualified Trade or Business screen.
Farm Rental
Menu Path: Income > Business / Rental Income > Farm Rental Income (Form 4835)
Enter your farm rental information and continue until you get to the Your Farm Rental screen. From there you can click on the Qualified Business Income Deduction item (under Miscellaneous). You can enter your QBI information on the Qualified Trade or Business screen.
Royalties
Menu Path: Income > Uncommon Income > Royalty Income (Schedule E)
Enter your royalty information and continue until you get to the Qualified Business Income Deduction screen, where you can enter your QBI information.
Partnership (Schedule K-1)
Menu Path: Income > Business / Rental Income > Partnership Income (Schedule K-1)
Enter your partnership information, making sure to include any QBI information from Box 20: Other Information. If you enter any qualified business income in Box 20, continue until you get to the Qualified Business Income Deduction screen, where you can enter your remaining QBI information.
S Corporation (Schedule K-1)
Menu Path: Income > Business / Rental Income > S Corporation Income (Schedule K-1)
Enter your S corporation information, making sure to include any QBI information from Box 17: Other Information. If you enter any qualified business income in Box 17, continue until you get to the Qualified Business Income Deduction screen, where you can enter your remaining QBI information.
Estate or Trust (Schedule K-1)
Menu Path: Income > Uncommon Income > Estate and Trust Income (Schedule K-1)
Enter your estate or trust information, making sure to include any QBI information from Box 14: Other Information. If you enter any qualified business income in Box 14, continue until you get to the Qualified Business Income Deduction screen, where you can enter your QBI information.
REIT Dividends
Menu Path: Income > Common Income > Investments and Savings (1099-INT/DIV/B/DA)
Enter your REIT dividends in Box 5, Section 199A Dividends of your 1099-DIV.
Enter your business income and expenses as usual, and we'll ask you questions needed to determine your QBI deduction. Depending on your type of business, this is where you can enter your QBI information:
Business (Schedule C)
Menu Path: Income > Business / Rental Income > Business Income (Schedule C)
Enter your business information and continue until you get to the Your Business screen. From there you can click on the Qualified Business Income Deduction item (under Miscellaneous). You can enter your QBI information on the Qualified Business Income Deduction screen.
Rental
Menu Path: Income > Business / Rental Income > Rental Income (Schedule E)
Enter your rental information and continue until you get to the Your Rental screen. From there you can click on the Qualified Business Income Deduction item (under Miscellaneous). You can enter your QBI information on the Qualified Trade or Business screen.
Farm (Schedule F)
Menu Path: Income > Business / Rental Income > Farm Income (Schedule F)
Enter your farm information and continue until you get to the Your Farming Activity screen. From there you can click on the Qualified Business Income Deduction item (under Miscellaneous). You can enter your QBI information on the Qualified Trade or Business screen.
Farm Rental
Menu Path: Income > Business / Rental Income > Farm Rental Income (Form 4835)
Enter your farm rental information and continue until you get to the Your Farm Rental screen. From there you can click on the Qualified Business Income Deduction item (under Miscellaneous). You can enter your QBI information on the Qualified Trade or Business screen.
Royalties
Menu Path: Income > Uncommon Income > Royalty Income (Schedule E)
Enter your royalty information and continue until you get to the Qualified Business Income Deduction screen, where you can enter your QBI information.
Partnership (Schedule K-1)
Menu Path: Income > Business / Rental Income > Partnership Income (Schedule K-1)
Enter your partnership information, making sure to include any QBI information from Box 20: Other Information. If you enter any qualified business income in Box 20, continue until you get to the Qualified Business Income Deduction screen, where you can enter your remaining QBI information.
S Corporation (Schedule K-1)
Menu Path: Income > Business / Rental Income > S Corporation Income (Schedule K-1)
Enter your S corporation information, making sure to include any QBI information from Box 17: Other Information. If you enter any qualified business income in Box 17, continue until you get to the Qualified Business Income Deduction screen, where you can enter your remaining QBI information.
Estate or Trust (Schedule K-1)
Menu Path: Income > Uncommon Income > Estate and Trust Income (Schedule K-1)
Enter your estate or trust information, making sure to include any QBI information from Box 14: Other Information. If you enter any qualified business income in Box 14, continue until you get to the Qualified Business Income Deduction screen, where you can enter your QBI information.
REIT Dividends
Menu Path: Income > Common Income > Investments and Savings (1099-INT/DIV/B/DA)
Enter your REIT dividends in Box 5, Section 199A Dividends of your 1099-DIV.
