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Is the QBI deduction calculated automatically or manually on a 1120S return?

Torrellis
Level 2

Is the Qualified Business Income deduction calculated automatically on 1120S. I not, where is the manual calculation entered?

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abctax55
Level 15

Wait for an update, as has been discussed a zillion times on this forum.

Just one recent one, from this morning:

https://accountants-community.intuit.com/questions/1792456-is-the199a-complex-worksheet-et-al-workin...

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"

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14 Comments 14
taxiowa
Level 8
Level 8
Actually on the partnership returns it is just a matter of telling program that taxpayer is a specified service or not.  That is entered on Sec 199A worksheet.  Then the info flows to the K1's.  You may have to make some adjustments to wages and asset balance and income, but that is all.  I imagine it is the same for s-corp.  Have not done any of those yet.
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abctax55
Level 15
:clap::clap:
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
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Torrellis
Level 2
Qualified Business Income is reported on the worksheet from what I can see. Where is the 20% deduction calculated? On the shareholder's 1040? If so, how?
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taxiowa
Level 8
Level 8
The codes to enter on 1040 K1 entry worksheet are on the landscape attachment statement you create.  Use these codes on the individual's 1040.  But not yet as pointed out repeatedly below the 1040 is not functional yet for K1's.  Also you have to print the K-1 199A statement separately as it does not print with the K1's.
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Accountant-Man
Level 12
The 20% deduction has other personal i.e., 1040 limitations, so there is no way the k1 can calculate it.
** I'm still a champion... of the world! Even without The Lounge.
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taxiowa
Level 8
Level 8
True.  The K1 only shows numbers from s-corp to figure on each individuals 1040 return.
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abctax55
Level 15

Wait for an update, as has been discussed a zillion times on this forum.

Just one recent one, from this morning:

https://accountants-community.intuit.com/questions/1792456-is-the199a-complex-worksheet-et-al-workin...

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
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IRonMaN
Level 15
A zillion?  Who is over exaggerating now?  It can't be over 9 billion.

Slava Ukraini!
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abctax55
Level 15
The truth hurts, eh?
To the issuer of the "no" vote...learn to read/research/explore  a wee bit on your own instead of depending on others to do so for you.
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
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abctax55
Level 15

AND...doesn't PS send out notices about what's going on like Lacerte does????

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
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Ernie
Level 9
Pro Series Notices - we just get an e-mail saying the number one question of the week is how do you install the software, etc.  Never any program errors.
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abctax55
Level 15
Hmm...perhaps a subject for Friday's Town Hall meeting ?
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
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IRonMaN
Level 15
ProSeries does issue alerts periodically when you open up the software.  And the good news is five people actually read those alerts.

Slava Ukraini!
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Just-Lisa-Now-
Level 15
Level 15
I actually haven't seen many of those alerts or notice banners this year.  I always read them but most of the time they are old news.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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