What is it about the QBI deduction that it cannot be entered onto the 1040 for 2018? I am coerced into forcing the amount onto the 1040 line 9. Help? Tim M

[tjmurph53]

I have an extension until 10/15/19. But I cannot get the 2018 QBI deduction to naturally flow to the 1040 line 9.  The QBI Deduction Summary page is as useless as post chewed gum! I feel that it will prevent e-filing the tax return.

[poolcleaner]

Have you filled out the QBI worksheet? What is on that worksheet? What has happened with other returns that are eligible for the QBI that you have filed?

[taxiowa]

There usually is an entry on the form which created the QBI.  It is usually at bottom of form and asks "Is activity qualified as trade or business?"

[tjmurph53]

The QBI worksheet that is not the QBI Summary do you mean? Neither of these forms permits entries...in other words if l click in a box, the warning comes up that this is not correct, that apparently the information should be entered elsewhere first...the only thing that has allowed the 20% deduction is if l force it into line 9 of the 1040...only had this one 1120-S/1040!client...but then l have red numbers and an Error message.

[tjmurph53]

I have many 1040’s but only one that is also involving an 1120-S

[tjmurph53]

I guess l have to just force it in there and file a paper copy..

[poolcleaner]

What is the involvement with the 1120-S?

[tjmurph53]

I’m not certain what you mean? The profit from the 1120-S was conduited over to his 1040 where he pays his taxes on the business income...so, he’s eligible for the 20% deduction for QBI...

[sjrcpa]

Did the K-1 have the QBI info on it and did you enter that info in the software?

[tjmurph53]

Well, can I ask you where in the instructions for either the worksheet or the summary form does pro series OR the IRS instructions even mention where the information is entered on these two forms? I have read the QBI instructions from the IRS at a minimum 15 times...not once do these instructions even tell you that the QBI deduction goes on line 9 of the 1040! How hard is that to state in the instructions? Anyway, in order to get this completed is this the process? That once I have the 1120-S net profit amount, that I enter this on the QBI worksheet? Then, somehow this entry then ends up in the QBI summary? And if it gets into the summary does it flow from there to the 1040, which avoids the mess of just forcing the 20% QBI deduction? If someone can answer this ai would greatly appreciate it...thank you!

[poolcleaner]

.

[poolcleaner]

May I assume you have entered the codes on the K-1 Line 17?  There should be entries on lines V, W, and X. These should then flow to Line 9 of the 1040. If there are no entries on the K-1, that is where your problem is.   

[George4Tacks]

@tjmurph53 Did you prepare the 1120S?

[tjmurph53]

Yes l entered the codes...and they did not flow over to the 1040...I prepared both the 1120-S and the 1040...that is my dilemma...nothing flowed over to the 1040...

[abctax55]

deleted....

[IRonMaN]

Sounds like another case of pilot error since it seems to work properly for everyone else.

[abctax55]

yeah...well...  I agree.  PEBKAC

[tjmurph53]

Funny, because l have seen all kinds of complaints about the process in not only Pro Series but three other software companies used by tax preparers that l know. Plus, two Pro Series technicians told me they dreaded calls about QBI deductions because it was a nightmare to fix issues this year...pilot error commenters...

[IRonMaN]

Did they also tell you that they dreaded the calls because most of the problems were related to pilot error :grimacing:

[tjmurph53]

Nope, not once! They know this is an f’d up hot mess caused by Congress pushing crap through at the last minute making everyone scramble...plus let’s face it, this could have been implemented in a much easier fashion...Do you read the Journal of Accountancy, which has had cover stories about this nonesense?

[abctax55]

NONE of that has to do with the software, now does it?
There were many, many discussions on QBI & how to apply it earlier in the year.
And, for most everyone, the software is doing the computations just fine right now.

[poolcleaner]

I haven't heard any complaints from clients when they receive the 20% deduction...including some who receive income from 1120-S K-1s.

[tjmurph53]

Yeah okay!Aren’t you the one who responded yesterday that the 20% QBI deduction is not eligible if you’re an 1120-S, pool cleaner? I wasn’t in on those discussions because l don’t do this 1120-S and 1040 combination until after April 15th due to the client not able to get me his information in time...l wasn’t looking for sarcasm here...just an answer...

[abctax55]

"I prepared both the 1120-S..."
So did you, or did you NOT, prepare the Corporate return?
Eligibility of the income for QBI deduction is determined AT THE ENTITY level....
THOSE numbers, if qualified, show in line 17 of the K-1.

(edited...line 20 is for a K-1 from a partnership...line 17 is for a K-1 from a S-Corp)  Thx George.

And leave Jane alone, 'kay?

The hundreds of folks posting in this forum have been able to get PS to handle the QBI reporting correctly IF the data is entered correctly.  Folks have given you the specific ways of entering it, yet the "software" is still doing it wrong, just for you?  Methinks PEBKAC

[tjmurph53]

First of all I have no idea who Jane is; second the acronym PEBKAC means nothing to me, so keep using it; third, I already have stated that I prepared both the 1120-S and the 1040 for this client, and tried using the worksheet for QBI deduction, but had trouble with it. I have been through many sites where accountants have specifically zeroed in on the QBI deduction as a nightmare calculation for various reasons and none of them were berated for the complaints. If this was such a slam dunk, why did the Journal of Accountancy choose to complain about it, including a front page highlighting the issues? To those who were helpful here, I thank you. For those who were not, lose the sarcastic attitudes and no-it-all demeanor...it helps no one...

[George4Tacks]

@tjmurph53 - What are the entries for the line 17 V, W & X. You are asking other users. We are not the PS Support. We can not see the K-1, so if you want help, then you have to give us more information.

[Just-Lisa-Now-]

PEBKAC = Problem Exists Between Keyboard And Chair    meaning its something youre entering/not entering or not understanding that is creating the issue, not the software

[IRonMaN]

QBI can be complicated but it doesn’t sound like it is in your case.  Did you complete the 1120S return correctly so that the necessary info was generated on the K-1?  If so preparing the 1040 is a piece of cake if you complete the K-1 worksheet, including checking an additional box or two.  This really isn’t rocket science.

[tjmurph53]

Thank you for your time everyone...

[tjmurph531]

To George4tacks specifically: George at line 17 the “V”has (Stmt)next to it and the “W” also has (Stmt)...so no numbers typed in there...and, when you click on that it is not taking you to any statement on the 1120-S form...therefore, no amounts have transferred to line 9 of the 1040 unless l force the 20% deduction in there manually...

[George4Tacks]

@tjmurph53 You prepared the 1120S, so what is on line 21? Line 7? Line 8? of the 1120S. Look at the depreciation schedule, what is the value of the assets, before depreciation? Is this a SSTB?
You state "when you click on that it is not taking you to any statement..." Have you physically print the full tax return? Maybe the statement will print, even though you can't see it by clicking.

[poolcleaner]

Clicking on that line will not take you to the statement!

[George4Tacks]

Kind lady, how do you get to those ever so important statements. I would like Tim to get a complete resolution to this vexing problem.

[poolcleaner]

If he asks pleasantly, I'll help.  You are a good man, George.

[tjmurph531]

I am currently at work and not near the tax returns...l’ll look again at it when l get home...

[taxiowa]

There is a K-1 199A statement that has to printed off the 1120S return for each shareholder.  It does not print when you print the K1's for each shareholder.  So if you did not print those, go back to S-corp return & print them.  They show code v, w & x values to input on shareholder K1 worksheet line 17.

[tjmurph531]

Okay thank you taxiowa

[tjmurph531]

To George4tacks:my line 21 equals $78048 for the client...l have worked out the issues with the help of Bill from Pro Series and was able to get the 20% to flow into the 1040 without putting a forced “red” number onto line 9 of the 1040, so all is good now...frustrating...many of you had issues early in tax season with QBI (l saw some of the comments from preparers here back then) where l was not using this QBI on any of my early returns, so despite a lot of reading and research l found the instructions from both the IRS and Pro Series to be too general in nature to be helpful...thanks to all!

[George4Tacks · Accepted solution]

https://accountants-community.intuit.com/content/p_sb_qbo_gl_cas_na_article:L4QuiQECJ_US_en_US?modif...

https://accountants-community.intuit.com/content/p_sb_qbo_gl_cas_na_article:L7rY6HPWf_US_en_US?modif...

[Archery]

    Do you enjoy providing a flip answer instead of actual help?  

Jim Fox