Entering Qualified Business Income (QBI)

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Overview

Qualified Business Income (QBI) is income from a trade or business that may qualify for a special . Eligible taxpayers — including individuals and some trusts and estates — may be able to deduct up to 20% of their net QBI. This includes income from pass-through entities (but not C corporations), qualified REIT dividends, and publicly traded (PTP) income.

The total QBI deduction is limited to 20% of your taxable income (before applying the QBI deduction), minus net capital gain plus any qualified dividends.

Schedule K-1

  1. Go to Federal Taxes.
  2. Click Review.
  3. Click I’d like to see the forms I’ve filled out or search for a form.
  4. Enter QBI in the search box and click on Qualified Business Income Entries from K-1 Forms to add and open the form.
  5. Enter your information and click Save.

  1. Go to Federal Taxes.
  2. Click Review.
  3. Click I’d like to see the forms I’ve filled out or search for a form.
  4. Enter Schedule C in the search box and click on Schedule C – Self-Employment Income to add and open the form.
  5. Scroll to the bottom of the screen and click the link I need to add more information for my Qualified Business Income Deduction.
  6. Enter your information and click Save.

Schedule F

  1. Go to Federal Taxes.
  2. Click Review.
  3. Click I’d like to see the forms I’ve filled out or search for a form.
  4. Enter Schedule F in the search box and click on Schedule F – Farm Income to add and open the form.
  5. Scroll to the bottom and complete the section for Qualified Business Income (QBI) Deduction.
  6. Enter any other necessary information and click Save.

QBI with No Business (REIT)

If you’re receiving a QBI deduction but don’t have a business, check your Form 1099-DIV for Section 199A Dividends. These are distributions from domestic Real Estate Investment Trusts (REITs) that qualify for a 20% deduction. This amount is reported on Form 8995, the Qualified Business Income Deduction form.

Prior-Year QBI, REIT, and PTP Carryovers

  1. Go to Federal Taxes.
  2. Click Review.
  3. Click I’d like to see the forms I’ve filled out or search for a form.
  4. Enter QBI in the search box and click on Qualified Business, REIT Dividends, and PTP Loss Carryforward to add and open the form.
  5. Enter your information and click Save.

Related Links

Qualified Business Income (QBI) – Business Aggregation

Further Information

About Form 8995

Instructions for Form 8995

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