topic TurboTax Premier thinks we have a small business in Deductions & credits

TurboTax Premier thinks we have a small business

mtiede — Sun, 28 Mar 2021 16:47:40 GMT

A few years ago, my wife had a small business. She doesn't anymore, but TurboTax Premier is still trying to calculate a "Qualified Business Income Deduction". How do I get that turned off so that it doesn't think we still have a small business?

Re: TurboTax Premier thinks we have a small business

ToddL99 — Sun, 28 Mar 2021 17:08:53 GMT

You will have to delete the forms and worksheets that are making the program ask you small-business related questions. This would include any Schedule C used in prior years and Form 8995 Qualified Business Income Deduction.

See: How do I delete forms in TurboTax Online?

After deleting these forms and worksheets, log out of the program. When you log back in, use the Delete a Form tool (List of Forms in My Return) to confirm these worksheets and statements have been removed from your return. 

Why does this happen? When you transfer the information from your prior year return, the program automatically includes certain forms in the current year - to make sure you don't forget to update those forms. If a form is no longer required (e.g. K-1s, Schedule C), you have to delete them from the current year. 

Re: TurboTax Premier thinks we have a small business

mtiede — Sun, 28 Mar 2021 17:35:30 GMT

It hardly asked any questions until it was trying to do that deduction. But I'll search out those forms.

... time passes ...

There is NO schedule C there. And although there is an 8995, the only thing there is basically the "Qualified REIT dividend and PTP entry. Not sure why. It has a "Qualified REIT dividends" value listed there. Don't know where it came from.

... time passes ...

I don't see a way to delete the form in TurboTax Premier on the PC.

... time passes ...

I found the delete in the main menu Forms. Not deleting it yet till I understand where stuff came from.

... time passes ...

I found this post: Form 8995 (intuit.com)

It said that the form is correct as it is being driving by some 1099-DIV values.

Re: TurboTax Premier thinks we have a small business

JamesG1 — Sun, 28 Mar 2021 17:36:23 GMT

Perhaps the QBID being generated by qualified REIT dividends. The Qualified Business Income Deduction can be generated from one of two components.

The QBI component can result from a sole proprietorship, partnership, S corporation, trust or estate. The first component would likely be reported on Schedule C, Schedule E, Schedule F or a K-1.
The REIT / PTP component can be generated from qualified real estate investment trust (REIT) dividends or qualified publicly traded partnership (PTP) income. The second component could be reported on 1099-DIV or a K-1.

If you can identify the source of the QBI, you can delete the form and re-enter or run through the TurboTax questions to make sure that the correct entry has been made.

Or IRS form 8995 is being generated because your spouse business activity carried forward a Qualified Business Income Loss Carryover from a previous year and is treated as arising from a separate trade or business.

Those losses carry over indefinitely until completely offset by positive QBI.

In TurboTax Online, view Qualified Business Income Loss Carryovers by following these steps.

Down the left side of the screen, click on Federal.
Across the top of the screen, click on Income & expenses.
Scroll down to Other Business Situations, click Show More to the right.
Click Start / Revisit to the right of Net Operating Loss / QBI Carryforward Loss.
Follow the screens to view the Qualified Business Income Loss Carryover.

Re: TurboTax Premier thinks we have a small business

mtiede — Mon, 29 Mar 2021 16:02:55 GMT

Ok, I see some REIT. So that is probably what triggers it.

So I think there is no form to delete from past "business", but just current dividends reported by the broker.