topic QBI Deduction Calculation in Deductions & credits

QBI Deduction Calculation

schwinn — Thu, 20 Feb 2025 17:04:08 GMT

TurboTax online is showing 2 different numbers they’ve calculated for the QBI deduction and are using the smaller of the 2 to calculate my return ($111). I believe it should be using the larger number. $(246-20% of $1230)Any thoughts?

Re: QBI Deduction Calculation

Mike9241 — Thu, 20 Feb 2025 17:11:50 GMT

if you had a QBI loss carryover that would reduce the current year's QBI deduction. you'll need to review form 8995, which can't be done with online until the fees are paid.

Re: QBI Deduction Calculation

VictoriaD75 — Fri, 21 Feb 2025 01:58:37 GMT

As stated above, you will want to review Form 8995 in your return. The QBI deduction is a complicated calculation and is subject to limitations and exceptions. For all taxpayers, the QBI deduction cannot exceed 20 percent of taxable income, excluding net long-term capital gains and qualified dividends.

However, there are two additional limitations on QBI: (1) wage limitation, (2) specified service business limitation. These limitations apply if taxpayers have income above $383,900 for married filing jointly and $191,950 for all other taxpayers in tax year 2024.

What is the Qualified Business Income (QBI) deduction?

@schwinn