Federal Carryover Worksheet QBI deduction (section 199A) carryover Applicable percentage

[dltax]

TT is asking me to fill out line 31 in Federal Carryover Worksheet with a percentage for QBI Deduction (Section 199A) carryovers for the prior tax year (2021). It lists percentages 2018-2020 (0.0, 0.02, 0.08). I have never filled it out previously. It seemed to autopopulate when I used TT the past years. This year it did not autopopulate. What is it referring to? 

[dltax]

Figured it out. It was form 8995A. And there are limits to QBI deductions.

[Uplate55]

So did you have to manually calculate the percentage? I am having the same issue. Program auto-calculated in previous years, but is showing me an error this year because I don't have a percentage for 2021.  How did you resolve????

[boger1]

Agreed.  Having same issue.  Didn't autopopulate for 2024 tax year; did beforehand.  Substantial loss carryforward, not sure if this line 31 percentage figure affects that carryforward.  TT can be pretty useless for some of this more arcane stuff.  My accountant says it should autopopulate as well.

[boger1]

What did you use on 8995A to figure the percentage of loss carryforward?

[RobertB4444]

Here is a thread on QBI loss carryforward that may help.

@boger1 

[teethdood]

Still having trouble with this applicable percentage. How do you calculate this percentage?

[Mike9241]

explanation

If this business has disallowed losses from a previous year, and they were in whole or in part from SSTB activity, then the applicable percentage is required for that year.

The applicable percentage is the percentage of your SSTB income that is qualified business income based on your taxable income. If your taxable income was below the "phase-in range" for the year in question (see below), this percentage is 100%. If your taxable income exceeded the phase-in range for your filing status, then this percentage is 0%.

example 2018 MFJ taxable income $400,000

$400,000 is $15,000 less than the maximum $415,000

the range is $100,000 $415,000- $315,000

so we get a percent of 15%  

Phase-in range by Year and Filing Status:
2018
Married Filing Joint filers: $315,000 - $415,000
All others: $157,500 - $207,500
2019
Married Filing Joint filers: $321,400 - $421,400
All others: $160,700 - $210,700
2020
Married Filing Joint filers: $326,600 - $426,600
All others: $163,300 - $213,300
2021
Married Filing Joint filers: $329,800 - $429,800
All others: $164,900 - $214,900
2022
Married Filing Joint filers: $340,100 - $440,100
All others: $170,500 - $220,500
2023
Married Filing Joint filers: $364,200 - $464,200
All others: $182,100 - $232,100

[teethdood]

@Mike9241 

Thank you so much for your explanation. TT doesn't auto-populate this simple calculation which causes a lot of confusion and anxiety. I've used TT for the past 15 years and never had to deal with this box until 2024 tax year (never qualified for any year).