I get asked to check the entry of previously disallowed QBI when the check runs and i am not exactly sure what that means. Can anyone help?

[DavidS127]

TurboTax is asking you the check the number for the loss your QBI business incurred in 2018. If you need the number, it should be on some sort of carryover worksheet from your 2018 return. If you used TurboTax in 2018, it will be on the 2018 Federal Carryover Worksheet, in a section entitled "Qualified Business Income Deduction (Section 199A) Carryovers.  

If you aren't able to "clear" the error by providing the 2018 carryover amount, please provide more details about the issue you are having.

This is a new thing in 2019, because the QBI deduction just started in 2018.  Now, for the first time, QBI losses from the previous year (2018) are being used to offset QBI income in the current tax year (2019).

When you have a business that qualifies for the Qualified Business Income (QBI) deduction, your deduction is based on the income of the "QBI business".  No QBI business income, no deduction.  And, if you have a loss on your QBI business, that loss gets tracked and "carried forward" to be offset against next year's QBI business income when calculating that next year's QBI deduction.

[dgk1]

I have no Previously disallowed QBI losses but when I put a zero on Line H3 of Section D2 or leave it blank I get an error which will not allow me to submit the return.  I have read the blog and tried what they have suggested to no avail ??

Can you please tell me what to do to overcome this problem

[DavidS127]

TurboTax updates since 3/10/2020 may have resolved your issue with "previously disallowed QBI losses. If you are using TurboTax Download/CD, use the menu at the top (Online>>Check for Updates).  TurboTax Online will update automatically when you sign in.

[cy-scott-chen]

Same problem. 

I got stuck in the filing step and I have tried enter "0", left it blank or enter "n/a". It just won't let me submit my tax. Someone please help me. 

[DavidS127]

More information may help resolve your issue.  For example, what version of TurboTax are you using, and what type of QBI business(es) are in your tax return?

[tmj713]

I am filing this years taxes for 2021.  It keeps asking for a schedule K1 disallowed from previous year.  I filed on TurboTax online but there is only the -2406 from Instacart but no worksheet that I can tell from the taxes.  What can I do for this year to get error cleared?

Tonya