ThomasM125
Expert Alumni

Retirement tax questions

Qualified business income (QBI) would be reduced by contributions to retirement plans, as well as by the deduction for self-employment tax. That could make your QBI negative even though you had net business income.

 

Also, if you had a negative QBI from business losses in previous years, it would get carried over to future years to offset QBI in those years. Furthermore, investments in public traded partnerships and similar business investments can generate QBI which would be negative if you sustained losses. So, you may have entries from previous years and other business investments that are causing your QBI to be negative in the current year.

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