aggregation - unable to efile

[chicago6065612]

I have an error message that turbotax this year does not support e-filing : “you have QBI Deduction Worksheet calculation schedule B – aggregation of business operations in this return”

I have done my taxes like every other year. Is the problem about IRS not having a form on time OR I screwed up aggregation when I was doing my rental properties ? when I print my files it looks different than last year. Last year every rental property was listed separately on the form called QBI Component Worksheet. This year the form 8895 shows “aggregation 2” – net income of all my other properties, and “aggregation 1” – net income of all 1 of my rental property. I am not finding every rental listed separately. I suspect this is a problem. Would someone know where to update the profile of each property ? or maybe wait for IRS with the right form ? really don’t want to print and file by mail. Please help – thanks

[jackwan1]

Just went through with TT support for two hours, my situation may not be the same as yours. But, I need to upgrade from Deluxe to Premier to resolve the problem which has no benefit for me. I will just paper file it.

[chicago6065612]

can someone from Intuit address my problem ? thanks 

[DavidS127]

You'll need to decide whether or not you want to aggregate the businesses in 2019.  Once you aggregate, you must continue to aggregate in future years.  But, not aggregating last year does not preclude you from aggregating this year.    Refer to the IRS instructions for Form 8995-A for more information on aggregation.

Once you decide, save a back-up copy (Save As) of your tax return and then try this approach:

In Forms mode, find the schedule for each business/source of QBI (e.g., Schedule E), and then find the Qualified Business Income Deduction Smart Worksheet for that form (e.g., for Schedule E it is after Line 22 Deductible rental real estate loss).  Question A in that smart worksheet asks which QBI worksheet to report (QuickZoom).  Choosing the same QBI worksheet for all businesses is how TurboTax aggregates them for QBI calculations; conversely if you use a separate QBI worksheet for each business/source of QBI they do not aggregate for the calculation.  The QBI worksheet is named the "QBI component worksheet". 

So, you can delete the QBI component worksheets that are not like you want, and repopulate new QBI component worksheets in the Qualified Business Income Deduction Smart Worksheet for each Schedule E, question A.

Sometimes if you find and click on the question or "box" in Forms, and then go to the View in the top menu and select "Step-by-Step" it will jump you back to the interview question.

[chicago6065612]

great feedback, we are on the right track I merged all my rentals under the same QBI component called “Rentals”. So I have 4 QBI Components. QBI Component for Business A called “A”,  QBI Component for Business B called “B”, QBI Component for all my rentals called “Rentals” …and QBI Component called “rentals1”..that form shows 0. I would like to delete that form but I cannot. Every time I click on delete form it pops right back up. I suspect that’s the problem why turbotax is throwing out error message. Also form 8895 shows 4 aggregations : “A”, “B” “Aggregation 1”  instead of “Rentals”  (why ?) and “rentals1”. I suspect I cannot delete “rentals1” as it is linked to something …

Also the error message says “you have QBI Deduction Worksheet calculation schedule B”. So I looked at that schedule B form 8995-A and it shows aggregation of all my rentals. Why does this form only aggregate my rentals instead of all my businesses ?

[DavidS127]

Your Form 8995-A aggregates your rentals separately from the other businesses because those other businesses failed to meet one of the IRS requirements to aggregate for QBI purposes at this link (emphasis added:(

1. You or a group of persons directly or indirectly own 50% or more of each trade or business for a majority of the tax year, including the last day of the tax year, and all trades or businesses use the same tax year end;

2. None of the trades or businesses are an SSTB; and,

3. The trades or businesses meet at least two of the following factors.

   • They provide products, property, or services that are the same or that are customarily offered together.

   • They share facilities or share significant centralized business elements such as personnel, accounting, legal, manufacturing, purchasing, human resources, or information technology resources.

   • They are operated in coordination with, or reliance upon, one or more of the businesses in the aggregated group.

For the "rentals 1" QBI Component sheet, look for an unused "rentals" business (one that was started but not used).  Go to Forms mode, find that "rentals 1" QBI Component worksheet and look for "clues" as to the source.  "Right-click" on one of the numbered boxes to find another schedule or form that is the "source", and if that source is not otherwise needed, delete it.

[SuperAcct]

I consider this a bug.  I am in the exact same situation.  I have multiple businesses that I choose to aggregate and they fit all the required qualifications.  But I have one business that could be considered a SSTB.  So it is by itself on one QBI Component Worksheet.  The other QBI Component Worksheet has all the other businesses together linked as you described above.  Still the QBI Schedule B (1) gets created.  I can't figure out why. 

The QBI component worksheet that has all the businesses has also answered all the questions for being able to aggregate, so why is this Schedule B being created by Turbotax?  And then I suspect this Schedule B form is the reason I can't efile.  But I delete this form and it recreates itself!!  You say that Turbotax aggregates the businesses by linking to the same QBI Component worksheet.  I did that.  I did not create this Schedule B.  Turbotax is doing that and I can't get rid of it.  So I am stuck.    

Turbotax is this something that you will fix???  Even with the new federal virus extension filing deadline moved to July, I would like to have this problem solved before then. 

Thanks. 

[DavidS127]

The Form 8995-A Schedule B is there because you are aggregating those businesses for the QBI deduction.  And yes, that Schedule B aggregation is what renders your tax return a "print and mail" return.  No date has been given for when TurboTax will enable e-filing for Form 8995-A Schedule B.

Using the same QBI Component worksheet for more than one business is what causes the Schedule B.  If you had a separate QBI Component sheet for each business, they would not aggregate and the Schedule B would go away.

Once you aggregate QBI businesses, you must continue to aggregate in future years.  But, not aggregating last year does not preclude you from aggregating this year.    Refer to the IRS instructions for Form 8995-A for more information on aggregation.

@SuperAcct

[SuperAcct]

Thanks. That explains it very well. I guess I will just wait on filing in hopes that Turbotax will fix the problem with the efile situation.   Worst case, I will have to unaggregate and efile before July.  

I refuse to print and mail because of the many pages in my return.  Also the post office has already lost one tax return I mailed for one of my businesses, even though it was certified mail and return receipt.  So not sure if I want to trust the mail again for tax returns.  

Thanks. 

[GM11]

Apparently the aggregation of 2 different businesses is not the only explanation for the "unable to e-file." I have only 1 relatively small K-1 that required filling out the Form 8995-A Schedule B, and I was told I have to mail my taxes in. Perhaps this is an undercover method to support the US mail service? Related to that, if I use small print so that 2 pages can be printed on each sheet of paper, is that likely to trigger an audit? I have a strong commitment to reducing waste, and it will be a lot of paper even if I print 2 pages of forms on each page of paper.

[MaryK4]

Unfortunately, there is no "conspiracy" to force you to print and mail using the USPS if you have Qualified Business Income and I apologize for any inconvenience or discomfort this has caused you. 

@GM11

[squartucci]

I was able to find some information at an IRS website that addresses known production issues and solutions for tax year 2019:
https://www.irs.gov/e-file-providers/tax-year-2019-modernized-e-file-schemas-and-business-rules-for-...
.
It lists the forms 8995 and 8995-A as having known issues:
 (USAmountNonPosType is a new efile type which forces the filer to use a negative amount on the lines where the form has parentheses. This may create a display issue on the printed form ,e.g.(-1)) and “We do not expect to make any changes at this time” 01/07/2020. Therefore it is safe to assume that Turbotax will need to follow suit and most likely it will not be resolved in order to e-file for 2020 tax year.

Turbotax supports the forms but it will result in returns needing to be printed and mailed per the IRS issue.