Entering Qualified Business Income

Alerts and notices

For most categories of business income, you must enter data for the Section 199A Qualified Business Income (QBI) deduction on an activity-by-activity basis.

  1. Choose Activities to open the Business Activities dialog.
  2. In the Activities list, highlight an existing activity for which you want to enter QBI, or add a new activity.
  3. Click the Data Entry button.
  4. In the Qualified Busn Inc tab, enter the income or loss in the Business income/loss field.
  5. Enter amounts in the Other adjustments, Allocable wages, and Allocable basis of property fields, and mark the checkbox in the Specified service business? field if applicable.

    Notes

    • The sum of the Qualified Bus Income Component fields for all activities copies to the Total of QBI components field on the Deductions > QBI Deduction tab.
    • The total QBI deduction in the Qualified Business Income Dedn field on the Deductions > QBI Deduction tab copies to the Qualified business income dedn field on the Main > Summary tab.
  6. Enter data related to payments received from a specified agricultural or horticultural cooperative in the applicable fields on the Specified Co-ops tab.

You should enter data for less typical types of business income, including publicly traded partnerships (PTPs) and the domestic production activities deduction (DPAD) allocated from an agricultural or horticultural cooperative, on the Deductions > QBI Deduction tab.

Enter real estate investment trust (REIT) dividends in the Income > Int/Div tab. These amounts will copy to the REIT dividends field on the Deductions > QBI Deduction tab.

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