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Get your taxes done using TurboTax
w-2 income is not qbi.
I understand the IRS allows applying the carryover loss from the LCC against W-2 income. Where did you see this. from IRC 199A (4)Treatment of reasonable compensation and guaranteed payments Qualified business income shall not include—
(A) reasonable compensation paid to the taxpayer by any qualified trade or business of the taxpayer for services rendered with respect to the trade or business,
it would seem your LLC is an s-Ciorp hence the w-2 income the QBI loss carryforward can be applied against the s-corp k-1 income but not the wages paid. Turbotax should have proforma's the 2022 QBI loss carryforward into the 2023 return depending on the form used to report the 2022 QBI loss form 2022
March 31, 2024
9:22 AM