QBI Loss Carryforward Question

[houseOfDogs]

I have been carrying forward a QBI loss from 2020 of -$218.

I've just had to prepare an amended 2022 tax return due to a never received 1099-NEC for $965 (and I had forgotten about the income), so the preparing process of the 2022 Schedule C applies that -218 to the QBI deduction calculation and thus reduces my 2022 QBI deduction, with the net result that there is no longer any carryforward QBI loss.

However, I have already filed my 2023 return which continued to show the -$218 carryforward.

Do I wait for the amended 2022 return to be processed and then file an amended 2023 return removing this carryforward loss? Or can I just show no QBI carryforward loss when I do my 2024 return.

Since I retired mid year 2022, I'm not sure I will have any Schedule C income going forward - in fact I just never filed a Schedule C in 2021, 2022, 2023 but TurboTax dutifully prepared a Form 8995 each of those years to carryforward the QBI loss of -$218. Since this carryforward loss reduces the QBI deduction, now that the loss is used, I'd like to get it off the books of the IRS computer should I have any Schedule C income down the road.

[PatriciaV · Accepted solution]

If the QBI carryforward did not affect your 2023 return, there is no need to amend it now that the QBI carryover no longer exists. Be sure to eliminate this from your 2024 return, as TurboTax will continue to carry the QBI forward until you delete it or it's matched with QBI income.