16617: 1065/1120S - Wks QBI Calculation and Override

The software will automatically calculate amounts for Wks QBI. Choose from the following scenarios to eliminate the QBI calculation, make changes to the QBI reported, or to show a breakdown of income from multiple activities reported on the 1065 or 1120-S return.

Option 1: If the entity should not have any amounts for QBI. 

1. Review Wks QBI in view mode and note all lines with amounts.
2. On the 199A screen, enter a zero on all applicable lines. 
3. Check the box at the bottom of the screen that says Check box to override calculated [1065 or 1120S] main form amounts only. 

Note: If you override the statement and zero (0) amounts are calculated for the entire statement then Wks QBI is not produced in view mode.

1. Review Wks QBI in view mode and note all lines with amounts.
2. On the 199A screen, enter a zero or the actual amount on all applicable lines. 
3. Check the box at the bottom of the screen that says Check box to override calculated [1065 or 1120S] main form amounts only. 

Option 3: If the entity received a K1 from another entity that reported QBI.

1. On the 199A screen, complete the fields, as needed.

Option 4: If there are some amounts that are not relevant to QBI from the main form.

1. Review Wks QBI in view mode and note all lines with amounts.
2. Determine the amounts that are QBI and the amounts that are not QBI.
   • Important: All amounts must be allocated to prevent message 0010 (1065) or 0011 (1120-S) and properly carry amounts to the Wks QBI and K1 Wks QBI for each partner/shareholder. 
3. On the 199A screen, select enter the amounts that should be included as QBI.
4. On the N199 screen, enter the amounts that should not be included as QBI in the applicable fields. This will appear as a separate row/column on Wks QBI with the description not qual. trade/business per screen N199. 

Option 5: If the QBI belongs to Form 8825, Schedule F, or rental (screen RENT). 

1. Drake18:
   • On the 199A screen, choose the respective form or schedule in the For drop down and enter amounts as needed.
2. Drake19 and forward:
   • Enter data in the override fields on the respective 8825, F, or RENT screen(s), as needed.

1. Review Wks QBI in view mode and note all lines with amounts.
2. Determine the amounts that are related to each trade or business that is part of the partnership or s-corp.
   • Important: All amounts must be allocated to prevent message 0010 (1065) or 0011 (1120-S) and properly carry amounts to the Wks QBI and K1 Wks QBI for each partner/shareholder. 
3. On the 199A screen, enter the EIN of that business and the Trade or Business Name (this flows to the QBI worksheet).  
4. Enter the amounts that should be included as QBI.
5. Page Down to create a new screen for each trade/business and repeat steps 3-5. 
6. If there are any trades or businesses operated by the partnership or s-corp that are not eligible for QBI, use the N199 screen to remove those amounts from the worksheet calculation. This will appear as a separate row/column on Wks QBI with the description not qual. trade/business per screen N199.