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How to enter qualified business income in Partnership and S-Corporate returns in ProConnect
by Intuit• Updated 7 months ago
In tax year 2019, the IRS provided more detail on how to report Section 199A qualified business income (QBI). Based on this guidance and the updated instructions for Form 1065 and Form 1120S, you may notice a few changes to how QBI appears on your returns.
- Entity level amounts will show on Statement A, which prints with the tax return worksheets.
- Amounts for each partner or shareholder will show on their own Statement A, which prints with their K-1.
Partnership input details
You can find input specifically related to QBI on Other Schedule K Items by selecting Section 199A (QBI) at the top of the screen. Here you can:
- indicate if the partnership is a Specified service trade or business (SSTB),
- choose to Exclude rental activities from the QBI calculation,
- check the box to Compute properties separately if you want each rental activity to be separately stated, or
- check the Partnership is Not a qualified trade or business box to turn off the QBI calculation.
You can also find override fields for specific QBI amounts here.
S-Corporate input details
You can find input specifically related to QBI under Other Schedule K Items in the Section 199A (QBI) Information section. Here you can:
- indicate if the S corporation is a Specified service trade or business (SSTB),
- choose to Exclude rental activities from the QBI calculation,
- check the box to Compute properties separately if you want each rental activity to be separately stated, or
- check the S Corporation is Not a qualified trade or business box to turn off the QBI calculation.
You can also find override fields for specific QBI amounts here.