Partnerships report qualified business income (QBI) of Schedule K-1 and must also:

a. Reduce ordinary income on page 1, Form 1065 by 20%

b. Calculate the QBI deduction for each partner on their Schedule K-1

c. Make adjustments on the partnership's balance sheet on page 5, Form 1065

d. Attach a statement to each Schedule K-1 so each partner may calculate their QBI deduction