Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 18, 2022 10:35:06 AM

Turbotax calcuation for 8995 - qualified business income deduction, appears incorrect. how does one verify turbo calculation before printing return?

0 1 305
1 Replies
Expert Alumni
Feb 18, 2022 12:27:53 PM

You would need to look at each entry on the form 8995 and investigate which ones you feel are incorrect. 

 

You need to keep in mind that the qualified business income (QBI) deduction is very complex and as such may contain provisions that you are not familiar with. For instance, the QBI deduction cannot be more than 20% of your adjusted gross income before the QBI deduction. Also, you must subtract any self-employment tax or IRA/SEP plan contributions from your business income to arrive at your QBI. Also, your deduction can be limited by your income and the nature of the work you do. You must also factor in prior year used business losses. It is not as simple as taking your business income and multiplying it by 20%.

 

Here is an article that you may find helpful:

 

QBI deduction