Per the Instructions for Schedule K-1 (1120S), page 19:
Codes V through Z. Qualified business income deduction. Generally, you are allowed a deduction of up to 20% of your net qualified business income plus 20% of your qualified REIT dividends and PTP income from your S corporation. The corporation will provide the information you need to figure your deduction.
To enter qualified business income in TaxAct:
- From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click in the upper left-hand corner, then Federal.
- Click Business Income under Federal Quick Q&A Topics to expand that category, then click S Corporation income (Form 1120S Schedule K-1)
- Click Add to create a new copy of Schedule K-1 or Review to modify an existing form
- Continue through the interview questions until you reach the screen titled S Corporation - Schedule K-1 Information, then check the box in front of Box 17 - Other Information, and then click Continue
- Click Continue until you reach the screen titled S Corporation- Other Information - Box 17A - C
- The program will proceed with the interview questions for you to enter or review the appropriate information