ThomasM125
Expert Alumni

Get your taxes done using TurboTax

The qualified business income (QBI) deduction is calculated based on business income which can come from sole proprietor income (Sch C) or S corporation or partnership or REIT income that is reported on a K-1 schedule. It can also be carried over from previous years if you reported business related losses in the previous year.

 

You would need business income in the current year to report a QBI deduction even if you had a loss carried over from the previous year. So, I suggest you look over the K-1 entries and also any small business entries on your return to determine where the QBI deduction is coming from.

 

If you have paid for your TurboTax product, you can view form 8995 Qualified Business Income Deduction Simplified Computation and that will show you where the QBI income is coming from. Once you find where it is coming from, you can update that section to remove or modify the QBI reported.

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