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TurboTax is trying to give me the Qualified Business Income (QBI) deduction, but I don't qualify. How can I remove it?

 
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6 Replies

TurboTax is trying to give me the Qualified Business Income (QBI) deduction, but I don't qualify. How can I remove it?

If you don't qualify for QBI, Turbotax won't calculate the deduction amount.

If it is calculating QBI and you don't think you qualify, return to the business income topic (Schedule C or Rental, etc.) and indicate that this income is not qualified.  

There is a screen at the end of the topic that asks specifically"Is this Qualified Business income", if you answer "No", Turbotax won't consider this income when calculating QBI.

SWahi
New Member

TurboTax is trying to give me the Qualified Business Income (QBI) deduction, but I don't qualify. How can I remove it?

I cant see the question about qualifying for QBI on any of my screens. I have payments received via cash for a tax preparation business which does not qualify for QBI. TT asks me two questions 1. Were the activities conducted in the US and were the activities conducted for a former employer. If I say yes and no to the two questions it gives me the QBI credit. I know I dont qualify for it.

 

 

 

 

 

TurboTax is trying to give me the Qualified Business Income (QBI) deduction, but I don't qualify. How can I remove it?

As a tax preparer you should know the rules for the QBI ( tax pros do qualify until a certain income level) and be using a professional program NOT TurboTax.

TurboTax is trying to give me the Qualified Business Income (QBI) deduction, but I don't qualify. How can I remove it?

The instructions for this question in your program is woefully inadequate as your program fails to list the following SSTBs which are precluded from taking the QBI deduction:

An SSTB is any trade or business providing services in the fields of:

Health;
Law;
Accounting;
Actuarial science;
Performing arts;
Consulting;
Athletics;
Financial services;
Brokerage services;
Investing and investment management;
Trading or dealing in securities;
Partnership interests;
Commodities;
Any trade or business where the principal asset is the reputation or skill of one or more of its employees or owners, as demonstrated by:
–Receiving fees, compensation, or other income for endorsing products or services;

–Licensing or receiving fees, compensation or other income for the use of taxpayer’s image, likeness, name, signature, voice, trademark, or any other symbols associated with the individual’s identity; or

–Receiving fees, compensation, or other income for appearing at an event or on radio, television, or another media format.

TurboTax is trying to give me the Qualified Business Income (QBI) deduction, but I don't qualify. How can I remove it?

The program is further defective in its failure to compare the IRS Principal Business Activity Codes the user enters to the specified service trades or businesses (SSTB) codes that are precluded from taking advantage of the QBI Deduction.
TurboTax should be embarrassed in how they have handled this issue. 

MaryK4
Expert Alumni

TurboTax is trying to give me the Qualified Business Income (QBI) deduction, but I don't qualify. How can I remove it?

Income from a specified service business can be treated as QBI only if the taxpayer's taxable income (before the QBI deduction) does not exceed an annually adjusted threshold (for 2018, $315,000 for MFJ and $157,500 for all others).

 

TurboTax is programmed to pickup the threshold amount before you complete the federal part of the return.

@1NotHappy

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