Qualified Business Income Deduction - Pass-Through Partnership Income
1
Schedule K-1 from a Partnership reports Section 199A information in Box 20, Code Z. You should also have a larger K-1 Statement attached that contains more detailed information that will be used to calculate the Qualified Business Income (QBI) deduction. The QBI deduction is a deduction of up to 20% of qualified business income, plus up to 20% of qualified REIT dividends and qualified PTP income. See the Partner's Instructions for Schedule K-1 (Form 1065) for details.
To enter the Qualified Business Income (QBI) information from Schedule K-1 in the TaxAct program, follow the steps below.
Online
Dashboard
From within your TaxAct return, click Income.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Business & Self Employed drop-down.
Click Add beside Partnership Income.
Add the Schedule K-1 and proceed through the interview until you see the Partnership - Schedule K-1 Information screen. Select all applicable boxes, including Box 20 – Other Information.
Continue through the interview until you see the Qualified business income deduction information screen. Complete all applicable fields and click Continue to get to the second QBI screen and make any other needed entries.
Complete the rest of the interview process.
Classic
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Business Income drop-down, then click Partnership income (Form 1065 Schedule K-1).
Add the Schedule K-1 and proceed through the interview until you see the Partnership - Schedule K-1 Information screen. Select all applicable boxes, including Box 20 – Other Information.
Continue through the interview until you see the Qualified business income deduction information screen. Complete all applicable fields and click Continue to get to the second QBI screen and make any other needed entries.
Complete the rest of the interview process.
Desktop
From within your TaxAct return, click Federal.
Click the Business Income drop-down, then click Partnership income (Form 1065 Schedule K-1).
Add the Schedule K-1 and proceed through the interview until you see the Partnership - Schedule K-1 Information screen. Select all applicable boxes, including Box 20 – Other Information.
Continue through the interview until you see the Qualified business income deduction information screen. Complete all applicable fields and click Continue to get to the second QBI screen and make any other needed entries.