Full amount of 1/2 of SE Tax Deduction is not reducing QBI.... why?

[itonewbie · Accepted solution]

Lacerte is indeed reducing QBI by 1/2 of SE-tax.  You may want to check that the activity you referred to is marked as a qualified trade or business (depending on the default of each Schedule) and check the worksheets in more details.

[itonewbie]

Oh, and if you have multiple qualified trades or businesses, the SE-tax deduction would be allocating among these activities to which the deduction is attributable.  You're probably not referring to this when you say "full amount" but thought I'd just toss this in just in case.

[linda4]

The case is husband and wife partnership.  Both receive K-1s with QBI/self employment income.  The QBI info is properly input in the K-1 input section.  I have thoroughly reviewed the QBI worksheets.   The total of 1/2 SE Tax deduction as listed on worksheets is $226 less than 1/2 SE Tax deduction on 1040.  No other source of SE income for either spouse.  Also, the SE Health Insurance deduction is not reducing QBI (and not listed on worksheets).  I have tagged the SE Health Ins to the respective K-1s in the SE Health Ins input section.  I have other instances where the calculation has been correct (Sched C, Sched F).  But returns with partnership K-1 QBI hasn't been accurate.

[itonewbie]

Just to check, are these K-1's from an s corp or partnership?

[linda4]

Partnership

[itonewbie]

SE-tax deduction should be flowing correctly.  If you could post your input screen and the QBI worksheet, we may be able to help you diagnose the problem.

Will respond to your question about SEHI on your other post.