Schedule F loss carryover

[farmer875]

On schedule F I need to carryover QBI loss. Im confused about the regular tax column vs the QBI column. The second worksheet was prefilled from previous years of turbo tax and I needed to fill Line B of the top page. Im assuming I add up the prefilled numbers and use them for Line B on the top. Please advise if I've done this correctly. Also any any advice on the suspended loss "regular tax" vs "QBI". The easy step was even more confusing and not much help. Thanks

[AliciaP1]

Yes, you have filled it out correctly.  There are 2 columns because there are some instances where all the income or loss from a business does not qualify as QBI so there may be a difference between regular (NOL) and QBI.  Since your page 2 of your Carryover Worksheet populated and shows the amounts as the same, you correctly totaled them and included them on Line B of page 1.

[farmer875]

Ok great but my next question is why does it add both QBI loss and Regular tax loss together on line 3. It only shows $-107606 for schedule F deduction but here they are both added together and looks like a have a far greater loss. Mabe I'm reading into too much? Thanks

[AliciaP1]

No, you're not reading into it too much!  It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on the top of your screen and select Online. 

1. Scroll down to and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 

Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.   

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@farmer875 

[Happy Farmer]

I have the same issue. I contacted customer support twice.  Each time they said my entries look correct, and I would need to pay an extra $100+ to have one of their experts look at it. Ugh. Because the program is combining 2018 to 2022 non-passive carryovers, the program is allowing me to receive all of my federal tax withholding from 2022.  Doesn't seem right.  Why is it applying all of the carryovers from 2018 to 2022 instead of allowing me to just apply 2018?  Oh, the program took the total of the five years and inserted the total under miscellaneous expense on schedule F and listed it as a "Section 465(d) carryover.  The program also indicated that I needed to make an $xxx adjustment to my schedule F profit and loss.  This definitely seems like a program glitch. Help!

[AliciaP1]

While I can't share your screen and look at it with you I can look at your file without your personal information if you follow the steps in my previous post on this thread and post the token number here.  This is the only way an Expert can help you through this forum.

@Happy Farmer 

[farmer875]

my token #1091456

My schedule F also listed under misc exp "465(d) carryover. My bank said they've never seen that before and I need to get it looked at closer. But my main concern is that it is effectively doubling my QBI deduction by adding it with regular tax column? This is the first year my schedule F showed a profit so now the QBI deductions are applicable. 

In years past when I had a negative AGI my NOL was listed under 1040, schedule 1, line 8a. Am I right to assume it's not listed there now because I have positive income when my off farm wages are taken in account?

[AliciaP1]

You need to enter your QBI losses through the interview process rather than in Forms.  The information that rolled over from your 2021 return is getting duplicated because you also entered it in Forms.  The best option will be to delete the "QBI Component (Previously disallowed losses from XXX)" and the "QBI Ded Summary" then go back to the interview process to ensure the loss information is entered correctly.

To do this in TurboTax Home & Business you can follow these steps:

1. Within your return, click on the Forms icon in the upper right of the screen to switch to Forms mode.
2. Scroll down in the menu bar on the left and select your one of your forms above.
3. Click the Delete Form button at the bottom left of the preview screen then repeat # 2 & #3 for the other form.
4. Confirm the deletion then click the Step-by-Step icon in the upper right of the screen.
5. Under the Business tab and Business Income and Expenses, select I'll choose what I work on.
6. Click Update for Farm Income and Expenses.
7. Continue and click Edit for your farm.
8. Scroll down to the Final Details section and click Update for Special Situations.
9. Continue to the At-Risk Carryovers screen and enter your total Regular Tax and QBI Carryovers.
10. Continue and verify the amounts for the years as they showed on your 2021 tax return.
    • You will need to enter a 0 for the year you did not have loss
11. Proceed entering/reviewing your return

@farmer875 

[farmer875]

Thank you for your great help. I did what you said and it looks like it staighened out that problem of doubling up. My trouble now is that Im not sure what to enter as "schedule F QBI losses carryover" vs "schedule F regular tax carryover". When I do the review it says I can't have a QBI loss without regular tax loss. The QBI loss was auto entered from previous years. 

Token # 1096292

[ThomasM125]

It appears in your case that the QBI carryover loss is equal to the regular tax carryover loss. You need to have both of them entered in your program, so if your question is what to enter for them, if you know one of the amounts the other amount is the same. 

[farmer875]

I'm sorry Im struggling with this so much. I'll pay to talk to an expert by phone if that's what it takes. My problem is I don't know what to enter for a carryover loss. According to my 2021 taxes (turbotax) QBI deduction summary line 8 shows carryover -xxx,xxx. I file schedule F which until this year has always shown a loss. That loss was deducted from my wife and my off farm income to lower our AGI every year. The last several years, we've had enough off farm income to use up the carryover AGI/NOL losses and it was positive last year. Now that for the first time our on AND off farm income are both positive, its trying to bring in QBI loss carryovers from 2018 through 2021. It adds the losses as misc expense on schedule F showing "465 (d) carryover". Is QBI loss somehow different than NOL? I thought those losses were used up. 

[AliciaP1]

Yes, QBI losses are very different from NOLs but can stem from the same loss.  NOLs offset active income, so anything that makes your AGI more than $0 and is not classified as passive income can be offset.  QBI losses can only offset QBI that started with the Tax Cuts and Jobs Act of 2017, so QBI has only existed since tax year 2018.  So, your NOLs are used up against your other active income, but now the QBI losses can offset your farm income and then allow you to claim a QBI deduction on the remaining income.  As long as you continue to make a profit, once the QBI losses are exhausted, you will continue to claim a QBI deduction until it expires or is rescinded.  QBI is set to expire in 2025 as of now.

@farmer875 

[farmer875]

Ok that makes sense now. But if QBI losses can now only offset QBI, why do Farm losses (schedule 1 form 1040 line 6)  get figured into my total income. It's like it is already offsetting non farm income and then carrying forward that same loss as QBI. Im just looking back at 2020 and 2021 taxes. I just really don't want to double these losses up and make a huge tax error.

[HopeS]

Form 1040 line 6, will show the income/loss from your Farm business. Any unused loss will carryover to 2023. Once you complete your return, preview your Carryover Loss schedule to see if the amount carrying over is correct.

You should also print the return with supporting worksheets so you can review the return more easily. 

See the information below:

When you print a records copy of your return, we include everything that was sent to the government, plus extra documentation and calculation worksheets.

However, the printout won't include copies of the entry forms you got in the mail, such as W-2s or 1099s. If you need copies of those, contact whoever issued them originally (e.g., your payroll department, payor, bank, brokerage, etc.).

Before proceeding, we recommend that you have Adobe Acrobat Reader DC installed on your system. Most computers already come with it, but if yours doesn't, you can get a free download from Adobe. 

To print through TurboTax:

1. Open the return you want to print
2. From the File menu (or TurboTax menu if you're on a Mac), choose Print
3. In the pop-up window, select the form set you want to print (tax return, specific forms, etc.) and then select Preview Print Copy (on Mac, select your print options and then select Continue)
4. Your forms will open in Adobe Acrobat Reader. Select the "printer" icon from the menu to open the print window, and then after making any adjustments in the window, select Print at the bottom

You can also print directly from a saved PDF of your return by double-clicking the PDF to open it and then following the instructions in step 4.

@farmer875 

[farmer875]

Ive reviewed the last several years of paper copies with all supporting gdocuments.  Heres what happening by example

1040

w2 wages=                 100,000

schedule F.  Loss         -40,000

AGI. =.                            60,000 taxable income

That same 40,000 loss is the same QBI loss. It adjusted this years taxes and shows -40,000 QBI to carryover to next year according to QBI Deduction Summary.
To me it seems I'm taking that loss twice?