The issue is 100% a software problem. Health insurance for partners reported as guaranteed payments reduces QBI at the partnership level. The software is making a second reduction at the individual level, which is incorrect. If you don't want to override, another approach is to NOT report the health insurance as a guaranteed payment on the 1065, and instead just show it as a footnote on the K-1 and have the partner deduct it on their 1040. This isn't technically correct per IRS instructions, but effectively gets the right QBI result. But honestly, just overriding the software calculation is cleaner.

This is such a widespread issue this filing season! I'm seeing it across multiple software platforms - UltraTax, ProSeries, Drake, and others all had similar bugs with the QBI calculations for partnership health insurance. What's really frustrating is that the software companies seem to understand the S Corp treatment (health insurance in W-2 wages shouldn't reduce QBI again on the individual return) but haven't applied the same logic to partnerships. The concept is identical - the guaranteed payment for health insurance already reduces QBI at the partnership level. For anyone still dealing with this, I'd strongly recommend documenting your override with a detailed workpaper. Include references to Reg. Sec. 1.199A-3(b)(1)(vi) and note that the guaranteed payment has already reduced QBI at the entity level. The IRS guidance is pretty clear on this point, even if the software implementation has been problematic. Has anyone heard if the major software companies have committed to fixing this for next filing season? It seems like such a basic issue that affects so many partnership returns.

Have you guys had any issues with tax software handling these kinds of rental income situations? I tried using TurboTax last year and couldn't figure out where to report services received as rental income.

This is such a helpful thread! I'm dealing with a similar situation where my tenant handles snow removal in winter and takes $150 off rent each month during snow season. Based on what everyone's saying here, it sounds like I should be reporting my full rent amount ($2200) as income for all 12 months, then claiming the snow removal as a maintenance expense during those winter months when the service is actually provided. One question though - do I need to issue a 1099 to my tenant for the snow removal services? Since it's over $600 for the year, I'm wondering if there are any reporting requirements on my end beyond just the Schedule E entries. Also, for documentation purposes, would it be smart to have the tenant submit invoices or receipts for the work even though they're doing it themselves? I want to make sure I have proper backup in case of an audit.

Anybody else notice their employer started doing withholding differently? I'm in food service and my company switched payroll systems last summer. My checks got like $30-40 bigger each pay period which was nice at the time, but now I owe $950 when I usually get about $1400 back. Never had this happen before in 12 years of working.

This is exactly what happened to me! I work at a chain restaurant and we switched to ADP payroll in July. Nobody told us employees that we might need to update our tax withholding when they made the switch. I noticed my paychecks were about $35 bigger but figured it was just a small raise or something. Fast forward to tax time and I owe $1,200 instead of getting my usual $800 refund. That's a $2,000 swing! When I called our corporate HR line, they basically said "oops, the new system uses different withholding calculations and we should have communicated that better." It's so frustrating because this affects exactly the workers who can least afford a surprise tax bill - people in service jobs who are living paycheck to paycheck. That extra $35 per check felt like a blessing at the time, but now I'm scrambling to figure out how to pay the IRS. I wish employers were required to give clearer warnings when they make changes that affect our taxes.

Wells Fargo customer here with DDD 3/14 - just got mine at 4:45pm! So there's still hope for those waiting. Wells Fargo almost never does early deposits but today was different for some reason. My transcript had the 846 code since Monday. For those with PNC still waiting, I've seen them deposit as late as 8pm on early deposit days, so don't lose hope yet!

Still waiting with PNC here too! DDD of 3/14, filed 2/1 and usually get deposits around 2pm but nothing yet as of 5:15pm. Seeing Wells Fargo customers getting theirs is actually encouraging - maybe all the banks are just running a bit behind their normal early deposit schedule today. The 846 code on my transcript gives me confidence the money is definitely coming. I'll check again around 8pm since I've heard PNC can deposit that late sometimes. Fingers crossed we all get ours before the day is over! 🤞

I had this exact same panic attack when I received my 5498-SA form last May! The empty Box 5 had me convinced something was seriously wrong with my HSA account. I called my HSA provider three times before they finally explained that Box 5 (fair market value) is often left blank on initial forms and filled in later. What really put my mind at ease was understanding that the 5498-SA is essentially just a "receipt" confirming the HSA contributions you already reported on your tax return. The IRS requires HSA administrators to send this form by May 31st - which is intentionally after tax season - because they know people need to file their returns before receiving it. The key thing to check is whether the contribution amounts in Boxes 1-3 match what you deducted on your tax return. If they do (which they almost always do since you're reporting your own contributions), then you're completely done. No amendment needed, no penalties, no problems - just file it away with your tax records. This timing confusion catches so many people off guard every year. I wish the IRS would include a simple explanation on the form itself saying "This form may arrive after filing - this is normal procedure." Would save a lot of unnecessary stress!

As someone who just joined this community because I'm dealing with the exact same HSA form confusion, this thread has been incredibly helpful! I received my 5498-SA form yesterday and immediately went into panic mode thinking I'd messed up my taxes somehow. Reading through everyone's experiences here, it's clear that this late arrival timing is completely normal and built into the system. The fact that so many people go through this same stress every year really highlights how poorly communicated this process is by the IRS and HSA providers. I particularly appreciate the professional perspectives shared here - knowing that tax preparers see this confusion with 30% of their HSA clients makes me feel much less foolish for worrying about it. The explanation that the May 31st deadline for HSA administrators is intentionally after tax season because the IRS knows we need to file earlier makes perfect sense once you understand it. I'm going to check my contribution amounts in Boxes 1-3 against what I reported on my return, but I'm already feeling much more confident that this is just a normal part of the process. Thanks to everyone who shared their experiences - this community is a lifesaver for navigating these confusing tax situations!