Why would the Qualified Business Income and associated 20% deduction be reduced when I simply added my social security number to the personal info section when prepping my taxes? I typically add my SSN at the end, prior to filing. I noted that adding my SSN changed the QBI amount that I entered from my 1099-MISC to a lower amount (~$2,000 lower), which in turn lowered the 20% QBI deduction. Why would this occur when using Turbotax?
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your filing ststus could change QBI but not your SSN. look at form 8995/8995-A for computation.
Thanks Mike. The only thing that changes is the Qualified Business Income when my SS is added. The 8995 shows this as well. I just wondered if it is an issue with the software or something I am missing...
Looks like the self-employment deductions for the business are not included on the Qualified Business Income Deduction Smart Worksheet until your SS is added. This reduces your QBI. Had no idea that the decision to add my SS would make a difference. Thanks again for the assistance!
Yes you should always enter your ssn first thing when you start and enter your name and address etc. at the beginning. It cant calculate many things and credits on your return. If you add it at the end you should go back and revisited every section especially for wages.
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