How does Turbotax calculate QBI deduction>?

[VolvoGirl]

My notes say

(1) the 1/2 SE tax deduction,

(2) Self Employed Health Insurance deduction, and

(3) employer retirement contributions

need to be subtracted from your business profit to determine "Qualified Business Income" (QBI) for the 20% deduction.

But One thing I found was my QBI credit was not as much as I thought it would be.  Because I had a business loss the prior year and it carried it over and took it into account.

[VolvoGirl]

What is the 20% QBI Deduction and how it's calculated

https://ttlc.intuit.com/community/credits-and-deductions/help/what-is-the-qualified-business-income-...

[ajk2010foros]

VolvoGirl,

Thanks for responding to my question and advising me that the 1/2 SE tax deduction must be subtracted from my business profit.  I didn't know it.  Thanks for a brief and clear explanation.

ajk2010foros

[Anonymous]

it's not a credit it's a deduction  - credit saves you $ for $ deduction saves a max of about 40% federal   there is also a 4th category, for partherships, and the like  partners may deduct certain expenses against the partnership results , these to would need to be subtracted in fiquiring QBI. 

also say there are 3 trades or businesss  1 and 2  - $20,000 profit  each 3 - $10,000 loss the loss must be allocated to the profitable ones so each of 1 and 2 would only show a $15,00o of QBI and it gets even more complicated if any are a specified service trade or business.   

[ajk2010foros]

Thanks for the explanation.

[VicSr]

Nice work VolvoGirl