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Level 2
April 13, 2026
Solved

TurboTax doesn't show QBI for second sole proprietorship

  • April 13, 2026
  • 1 reply
  • 44 views

I have 2 sole proprietorships.  One shows income as QBI in TurboTax Premier Mac.  The other is for work as a landscaper (code 561730) that has all its income on one 1099-NEC.  TurboTax shows QBI = 0 for that business.  Landscaping is not generally considered a “specified service trade or business” (SSTB) so I don't understand why QBI=0 on the worksheet.

    Best answer by PatriciaV

    I checked form 8995 and Line 1 lists both businesses but has QBI=0 for this one. 

     

    turbotax shows the QBI calculations with an explanation of how the amount was determined at the end of the ionterview for the one business but not the one it decided has 0 QBI.  I've revisited many times and even tried changing the business code to Misc (999000 or something.)  I get the interview about SSTB but I say it is not one of those and not deriving income from one of those.  The only real difference seems to be that the problem business income came on a 1099-NEC.

     

    I don't think it matters but there's actually a third business with a very small amount of earnings that was paid with a w2.  that also shows 0 QBI, but I expect that because of the w2.  all businesses use my name as the business name and are cash basis.


    Have you reviewed the QBI Smart Worksheet on Schedule C for the business with QBI=0? This worksheet appears after Part V and provides details on how the deduction is calculated, which appears on Line H. If you have net income for this business, some adjustment must be zeroing out the income for QBI.

     

    @user-1253

    1 reply

    Level 15
    April 13, 2026

    You have to designate the income from the business as qualifying for QBI treatment, it is not automatic. You will need to edit the landscaping business entries and after you review the income and expenses, you will see the option to designate the income as qualifying for QBI treatment. Also, you can use the help icon on the top right of your screen to enter "QBI" and you will see a "jump to" option that will take you to the QBI entry screen.

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    user-1253Author
    Level 2
    April 13, 2026

    I did check the "Yes landscaping is qualified business income." box and it is still not listed as having QBI on the QBI Income Deduction Summary.

    Level 15
    April 13, 2026

    It may be that the net income for the landscaping business is $0. That can happen if you add an asset and choose the section 179 depreciation option. In that case, just enough of the section 179 depreciation would be taken until the income of the business was reduced to $0, assuming the section 179 deduction was more than that.

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