I just went through this exact same headache with my K-1 Section 199A information! After hours of confusion, I finally figured out the issue - TurboTax does handle the QBID calculation automatically, but there's one critical step that's easy to miss. When you're entering your K-1 information, make sure you're completing the entire K-1 interview process in TurboTax, not just entering the numbers and skipping ahead. The software asks several questions about the nature of your business activity that directly impact how it calculates your Section 199A deduction. For your specific numbers from Box 20 Code Z, TurboTax will use the ordinary income ($22,450) and W-2 wages ($11,380) for the QBID calculation. The self-employment earnings ($30,275) and health insurance payments ($2,190) factor into other parts of your return but don't directly determine your qualified business income deduction amount. One thing that helped me verify everything was working correctly: after entering all my K-1 info, I went to the "Federal Taxes" tab, then "Wages & Income," and clicked "Show more" to see all the forms TurboTax was generating. I could see Form 8995 listed there, which confirmed the QBID was being calculated. The deduction should show up on line 13 of your Form 1040 as "Qualified business income deduction." If you don't see it there after completing your K-1 entry, that's when you know something went wrong in the process.

I just want to add something that might help others who are struggling with this same K-1 Section 199A issue in TurboTax. After reading through all these comments and dealing with my own K-1 headaches, I realized there's one more thing to watch out for that hasn't been mentioned yet. Make sure you check if your partnership sent you any supplemental schedules or attachments along with your K-1. Sometimes the Section 199A information isn't complete on the main K-1 form itself, and there are additional details in attachments that TurboTax needs to properly calculate your QBID. In my case, I had been entering everything from the main K-1 form but completely missed a supplemental schedule that had additional W-2 wage information and qualified property details. Once I entered that information, my QBID calculation changed significantly. Also, if you're still not seeing the deduction appear after following all the advice here, try looking at your "Detailed Tax Summary" in TurboTax rather than just the main forms view. Sometimes the Section 199A deduction is calculated correctly but doesn't show up prominently in the interface until you're actually ready to file. The bottom line is that Emma's frustration is totally understandable - this stuff is genuinely complex even when the software is working correctly. But once you get through it the first time, subsequent years become much easier since you'll know what to expect.

Anyone else think its crazy that we have to jump through so many hoops just to get our own money back? The system is rigged, man.

I went through something similar last year. What helped me was creating an online IRS account if you haven't already - you can view and download copies of notices they've sent. Also, make sure to check if your address on file with them is correct (you can update it online too). If the notice is about additional documentation they need, you can often upload it directly through the online portal rather than mailing it. Way faster than waiting for snail mail back and forth!

I just want to point out that the record keeping you did is PERFECT. I'm a former casino employee and so many gamblers don't keep proper records then get burned at tax time. The fact that you have: - A gambling log with dates, locations, games - ATM receipts - Player's card statements That's exactly what the IRS wants to see. One tip: if you do get audited (unlikely but possible), they typically ask for day-by-day records that show your starting bankroll, amounts bet, amounts won/lost, and ending bankroll for each gambling session. If your journal includes that level of detail, you're golden.

Just wanted to add one more important point that might help you and others in similar situations. When you're dealing with gambling losses that exceed your winnings, make sure you understand the "hobby loss" rules. The IRS treats recreational gambling as a hobby, which means losses can only offset winnings - you can't use gambling losses to reduce other types of income like your salary. Also, keep in mind that even though you can deduct up to $11,200 of your losses, you still need to report the full $11,200 in winnings as income. This means you'll owe taxes on that amount even though you ultimately lost money overall. It's one of the frustrating aspects of gambling taxation - you pay taxes on gross winnings, not net results. One strategy some people use is to spread their gambling activities across tax years to better manage the tax impact, but that's more of a planning consideration for future years. For 2024, you're stuck with the current situation, but at least you have excellent documentation to support your deductions!

Has anyone dealt with reporting the actual sale on tax forms? I'm selling a gifted house this month and have no idea which forms I need or where this all gets reported. I use TurboTax usually but not sure if it handles this well?

One thing that hasn't been mentioned yet - make sure you understand the holding period rules for gifted property. Since your grandparents owned the house since the late 70s and you've lived there for 8 years, you definitely qualify for long-term capital gains treatment (which has better tax rates than short-term). Also, don't forget that you can include certain closing costs from when you eventually sell in your basis calculation - things like title insurance, attorney fees, and some other selling expenses can reduce your taxable gain even further. Keep all your closing documents when you sell! Given that you're relocating for work, you might also want to look into whether any of your moving expenses could be deductible, though the rules changed significantly in recent years. It sounds like you're well positioned with the principal residence exclusion though - that $250k exclusion is huge for your situation.

I see a lot of discussion about the tax implications for the employees, but what about the nonprofit itself? If the credit card is in the org's name but personally guaranteed by the ED, would using those points for employee gifts be a proper use of nonprofit resources? Our accountant always reminds us that private benefit/inurement is a huge issue for 501(c)(3)s. Using org resources for staff could be questionable depending on your bylaws and policies. Might be worth checking with your board too.

Great discussion here! As someone who's navigated similar waters with our small nonprofit, I'd strongly recommend the group holiday dinner approach that was mentioned earlier. We switched from individual gifts to team experiences a few years ago and it's been much cleaner from both a tax and governance perspective. The key is documentation - make sure your board minutes reflect that this is for team building and staff recognition as part of your HR strategy to support your mission. We frame ours as "investing in our human capital to better serve our beneficiaries." One thing I'd add is to consider timing. If you do this in early December, you can potentially tie it to a board meeting or donor appreciation event to further justify the business purpose. We've found that combining staff recognition with mission-related activities helps demonstrate the organizational benefit to auditors or anyone reviewing our practices. Also worth noting - if your ED is still personally guaranteeing the card, you might want to work on transitioning that as your org grows. Many banks will remove personal guarantees once you have 2-3 years of business history and decent cash flow.