topic Negative business income in Self employed

Negative business income

kims374 — Mon, 09 Mar 2026 08:28:18 GMT

Can I report negative business income /loss carried forward from previous years found on form 8992 line 16 to offset my personal income somewhere on 1040 and how would I do this

Re: Negative business income

JohnW152 — Thu, 10 Mar 2022 14:50:15 GMT

Are you referring to IRS Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI)?

The IRS Prior Year Form 8992 search page indicates only two prior year Forms 8992, and neither have line 16. The form doesn't seem to be relevant to your issue, anyway.

Perhaps you are thinking of a different form. If so, please elaborate.

Re: Negative business income

kims374 — Thu, 10 Mar 2022 15:09:45 GMT

Form 8995 from 2020 has a negative bal on line 16.

Can I put that somewhere in my 2021 return to offset my regular employment income. I have a side business that has had looses over last several years.

Please advise thanks.

Re: Negative business income

PatriciaV — Thu, 10 Mar 2022 16:31:03 GMT

Yes, you can report a 2020 Qualified Business Income Loss Carryover on your 2021 return in TurboTax Online.

You can find this easily by searching on "NOL" and clicking the "jump to" link to go directly to this topic. The first page asks about 2020 Net Operating Loss. Continue to the next page to enter the amount from Form 8995.

Re: Negative business income

kims374 — Thu, 10 Mar 2022 22:08:05 GMT

Would I be allowed to claim the entire loss / negative amount or just a percentage of that? Please advise thanks.

Re: Negative business income

ThomasM125 — Thu, 10 Mar 2022 22:57:20 GMT

The qualified business income (QBI) loss carryover could be used in the current year to reduce any QBI income, but it wouldn't be a tax deduction. If you have business income, you can sometimes take a deduction of up to 20% of it from ordinary income. If you have a business loss however, you can't take the deduction in that year, but you have to carry the loss to the next year to reduce any business income in that year.

Re: Negative business income

kims374 — Thu, 10 Mar 2022 23:20:53 GMT

So just to clarify...I could enter the loss under the nol section for my 2021 taxes of 20% of the negative number?

Re: Negative business income

kims374 — Thu, 10 Mar 2022 23:21:51 GMT

The loss is from several previous years.

Re: Negative business income

ThomasM125 — Fri, 11 Mar 2022 00:42:49 GMT

No, it is not a NOL, net operating loss. A net operating loss is when you have more business losses than your other income. It has nothing to do with a qualified business income loss carryover.

When you enter your business income (QBI) either from self-employment income or a K-1 schedule, you will be asked to enter any QBI loss carryovers form the previous year. That is the only place you would enter a QBI loss carryover.