TT 2024 Premier for Windows Error Message: "QBI Passive Op Loss should not be greater than the total loss"

[DZH]

This TT Premier error seems to be the result of an erroneous calculation by TT.  See in the screenshot below how the Total value is equal to the 2023 value, and not with the sum of the values in the list.  As a result, the TT review generated the error message "QBI Passive Op Loss should not be greater than the total loss" and prevented the tax return to be finalized. The Total value cannot be overridden.  How can I fix these errors and finalize the return?

[PatriciaV]

It would be helpful to have a TurboTax ".tax2024" file to test this issue further.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose Share or Help.)

1. Choose Send Tax File to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear.
3. Reply to this thread with a screenshot of your Token number (this avoids Community filters for numbers with a dash) and tag (@) the Expert requesting the token from you.
4. Please include any States that are part of your return - this is VERY important.

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

[DZH]

Thank you, @PatriciaV. Please see the token number in the screenshot below. I'd appreciate any help on this issue.

[PatriciaV]

Thank you for the token. We have reviewed the form errors on Schedule E Worksheet Carryovers to 2024 Smart Worksheet, Continued. To resolve the errors, you will need to remove all entries other than 2020 for Regular Tax and QBI. These changes should bring the total of this sub-schedule in line with the totals on Line G of the Carryover worksheet, which will resolve the form error.

To summarize, return to the passive losses entry screen as you posted earlier. Delete all entries other than the two for 2020.

[DZH]

Thank you, Patricia, for the quick review! I made the changes and I no longer get the error message. I still have two questions:

1. The removal of the 2021, 2022, and 2023 Tax and QBI values addressed the software issue. However, those removed values were from previous tax returns and I must assume were correct. Doesn't their removal result in losing the carryover for the next year tax return?

2. I have used TT for Windows for many years and every year I wonder why is the software asking the user to enter values such the section 179 deduction, carryovers, etc., instead of extracting them from previous years' returns. The potential for errors and frustration is significant.

Best,
Daniel

[PatriciaV]

Yes, you are correct. You may need to re-enter those numbers next year. However, the only other option was to clear your return and start over. For some users, the transfer process wasn't complete and certain carryovers were missed.

[DZH]

It is a disappointment that we have to work-around a software issue instead of TT Premier fixing the issue. However, you have been very helpful. Thank you!