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Lorganized
Level 1

Schedule C QBI deduction is not showing

Why doesn't TurboTax produce a QBI deduction from my Schedule C if I have $834 Net Income?  I selected the Yes box where it asks, "Is this Qualified Business Income"?  Last year this same Schedule C business produced a QBI deduction.  This year it shows $0 on my Qualified Business Income Component Worksheet.  Not sure if it matters, but I did have K-1 business income this year that DID produce a QBI deduction (last year that K1 was a loss).  Is the QBI for only one business or the other? 

3 Replies
JamesG1
Expert Alumni

Schedule C QBI deduction is not showing

Various income components are netted together on IRS form 8995 or 8995-A

 

Does the loss from the prior year offset the profit from the current year?

 

Does the Qualified Business Income Deduction Summary show a loss from a previous year on line 3?

 

IRS Form 8995 may show a carryover on line 3.

 

IRS Form 8995-A may show a carryover on line 29.

@Lorganized 

[Edited 04/11/2021 7:43 AM PST]

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Lorganized
Level 1

Schedule C QBI deduction is not showing

JamesG1,

Thanks kindly for your response.  The Qualified Business Income Deduction Summary, line 3 titled "Loss from previous year" is blank.  And the Net QBI next to the name of my Schedule C says 0 even though the profit was $834.  However... while searching the pdf draft of the tax return worksheets and for "8895" and the summary you mentioned, I came across the Qualified "Business Income Deduction Smart Worksheet" specifically for my Schedule C and it appears my allowable QBI of $834 was negated by my self-employment health insurance and 1/2 self-employment tax!  So that is the reason I get no QBI!

JamesG1
Expert Alumni

Schedule C QBI deduction is not showing

That can do it.

 

TurboTax does a good job of laying out the Qualified Business Income Deduction computation but you have to follow multiple worksheets and IRS forms to do it. 

 

At times, it can be a tester. 

 

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