Qualified Business Income Deduction

Forum|Forum|4 years ago
February 14, 2022
1 reply
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I have a self-employed consulting practice. I received a QBI deduction of 20% on a business of less than $25,000 for my 2020 taxes filing jointly. In 2021 my business had net income of $32,400. But TurboTax premier did not indicate a QBI deduction...it did for my wife's $1100 side income. The only significant change was a created a 401k for myself and contributed both employee and employer amounts totaling $30,100.

Why am I not receiving a credit this year?

ColeenD3

Level 15

Go back through Schedule C and check all your answers. It may be that you accidentally clicked the wrong selection or that the question regarding QBI was overlooked. I have overlooked it too many times to count.

cav70sdadAuthor

Level 2

Thank you for responding, but I haven't seen any issue on the hardcopy of Schedule C It looks essentially the same as my 2020 Schedule C though 2021 numbers are different. Is there a place in the software that generates Schedule C I should be re-examining?

JamesG1

Level 15

Have you reviewed the QBID qualifications?

At Federal / Income & Expenses / Your income and expenses, click Edit / Add to the right of your self-employment activity.
Click Edit to the right of your self-employed activity.
At the screen Here's you info, scroll down to Qualified Business Income and click to the right.
Perhaps a question here has not been answered.