Section 199A dividends on 1099 form

[RWG1950]

My customer has provided a mutual fund 1099-DIV that includes $ 127 in section 199A dividend income. I'm assuming this qualifies for the 20% subtraction.
The software I use (taxwise) doesn't have a place to enter 199A dividends in the "B" worksheet.
When the $ 127 is entered in part IV on line 28, page 2 of the 8995A, things seem to flow correctly to the bottom of the page, showing $ 25 on line 39.
Shouldn't the $ 25 be showing up on line 10 of the 1040 as the qualified business income deduction ?
Thanks for any comments.

[terryats]

If you are sure that your client other wise qualifies just put 20% on line 10 of the 1040. I use ProSeries, and we have a place for it.

[DoubleO]

Mine does.

[TAXNJ]

My customer has provided a mutual fund 1099-DIV that includes $ 127 in section 199A dividend income. I'm assuming this qualifies for the 20% subtraction.
The software I use (taxwise) doesn't have a place to enter 199A dividends in the "B" worksheet.
When the $ 127 is entered in part IV on line 28, page 2 of the 8995A, things seem to flow correctly to the bottom of the page, showing $ 25 on line 39.
Shouldn't the $ 25 be showing up on line 10 of the 1040 as the qualified business income deduction ?
Thanks for any comments.

What did your software technical support tell you how to handle this issue in their software that you purchased?

[BP.]

Can you use Form 8995 instead of 8995A? Worked fine.

[RWG1950]

Taxwise technical support at first told me that the 199-A dividends on their own do not qualify for the QBI deduction.
If a taxpayer otherwise qualifies, it seems to me they should get the 20% deduction on these dividends.
It is my understanding that 199-A dividends and qualified REIT dividends are the same.
When I add such dividends to the 8995-A for my own return (I'm filing a schedule "C"), they do add to the 20% total that flows thru to line 10 of my own 1040.
The Taxwise support person then pointed out a box to check on the 8995-A that would allow for manual entry on 1040 line 10.
Guess that's what I'll have to do for the 199-A dividends when a customer does not file a business return with their 1040.

[RWG1950]

BP
Thanks for your reply. Worked like a charm. I grow older but no smarter.

[Gene V]

I wonder if we have to show the sec 199a dividend (REIT)? Most of the dividends that I have seen
are very small $5 to $42 dollars, and 9 out of 10 times they do not reduce the clients taxes, all it does
is print the Form 8995 and transfer number to line 10 Form 1040.

So, now you can charge your client additional fee for the Form that didn't reduce their tax.