1040 Software Sec 199Wkst

[DBAN1957]

I am looking at the QBI Deduction - Service tab of the "Sec 199A Wkst"  Under the dropdown box  "Select Activity to Display Below" the only option to choose is blank.  My Schedule C is not a choice under the drop down box. Under the Activities Tab the Schedule C is listed under activity name.  I checked the blue box labeled "Service Business: I am under the thresh hold limit for taxable income. I get no QBI deduction. I have positive taxable income, no net capital gains, no K-1s, no rentals, no other business loss that would offset the number.

 

No Numbers show up on the QBI Deduction - Service tab.  Even if I put  number in the blue coded box labeled "Income/Loss" on the "Activities Tab" I do not get a deduction. Has anyone run into a similar situation with the Sec 199A Wkst?  Any comments would be appreciated.  Thanks

[EricF]

I posted in a thread that to get an activity to show up on the QBI Deduction - Service tab, you have to check both Qualified Business and Service Business.

[claycpa]

I have keyed in a k1 for an s corporation in the k1 input screen.  At the bottom of the screen, I also keyed in the 199a deduction information.  I found out from chatting w/ tech support that I have to key in the SAME information on the section 199a worksheet.  Also - thanks to Eric above - I have learned that I also need to mark the qualified business AND service business.  It should have this information automatically flow over from the k1 screen.  (Also seems strange to me that I have to mark the business as "qualified" but that's a pretty easy fix).  ALSO - instead of marking a Schedule C or E as being "qualified" and "service or not", you have to remember to update the 199a worksheet everytime a change gets made to schedule c and e manually.   This information also is not automatic. This set up is ripe for something to get missed!

[EricF]

I have found the QBI inputs on K-1 screens to flow automatically to the 199a Worksheet on the Activities tab, although the QBI may have to be adjusted by related deductions for SE tax, SE health insurance, etc.  Schedule C information does not flow, though, and I think it should, although Schedule C doesn't have a number for W-2 wages or qualified property.

[LouD]

I've got an S-Corp K-1 info on a personal return and nothing flows thru to the QBI worksheet no matter what I check in the Activities tab.  I tried deleting and re-opening the 199a worksheet and still nothing is linked.

[EricF]

Have you made sure that the QBI items are entered on the K1 Input (1120S) input sheet?  On Line 17, Code V is where QBI is entered, Code W for W-2 wages, and Code X for unadjusted basis.  You can enter them in either a service or non-service box.  If numbers are entered in the service boxes, it will flow the numbers to the Activities tab and check the Service Business Box, but you also have to check the Qualified Business box for numbers to flow into the tabs where limitations are computed. If numbers are entered in the non-service boxes, it will flow the numbers to the Activities tab, but you have to check the Qualified Business box for numbers to flow into the computations.

[jklcpa]

22 minutes ago, EricF said:

Have you made sure that the QBI items are entered on the K1 Input (1120S) input sheet?  On Line 17, Code V is where QBI is entered, Code W for W-2 wages, and Code X for unadjusted basis.  You can enter them in either a service or non-service box.  If numbers are entered in the service boxes, it will flow the numbers to the Activities tab and check the Service Business Box, but you also have to check the Qualified Business box for numbers to flow into the tabs where limitations are computed. If numbers are entered in the non-service boxes, it will flow the numbers to the Activities tab, but you have to check the Qualified Business box for numbers to flow into the computations.

Hi @EricF , would you consider posting this and your other tips in the pinned topic I set up for this purpose? I foresee that many of our members will be looking for this guidance throughout the season.  Thx

[LouD]

I did everything described above and nothing flows from the K-1 input to the 199a worksheet

[claycpa]

Ditto what LouD said!  NO FLOW!

[EricF]

I stand by what I have experienced in my ATX software.  I don't know why yours is behaving differently from mine.

[ETax847]

ATX definitely could have made this worksheet more user friendly. 

[mircpa]

Information is not flowing from K1 to 1991Wkst. You need to manually re-enter K1 figures onto 199 worksheet in 1040

[G2R]

I agree, I believe I followed everything EricF said to do about and the information in not flowing from the K-1 to the 199A wkst.  Has a solution to this been found?

[ILLMAS]

1120S related, not 1040

 

Did you click on gray out box on page 4, line 17d?  

I believe no one here has made that point before, if someone were to explain it in detail it would be helpful, and if someone explained in detail about clicking on the gray box on line 17d, then it was not picked up on the QBI information sticky.

[EricF]

Thanks, ILLMAS.  Clicking on the gray box under the 17c box takes you to the tab for detail for Box 17d, Schedule K for an 1120S.  I had always been finding the tab among the Pages & Worksheets.  That's where the 199A amounts are entered for presentation on the K-1, which is a requirement for an owner of an entity to get the QBI deduction for that business.