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Returning Member

Gid rid of QBI

I accidentally let my income be classified as QBI. It is definitely not QBI. How can I remove the QBI classification?

2 Replies
Level 1

Gid rid of QBI

To remove QBI classification from your tax return you need to delete the Form 8995 . Please see the steps below to do it in TurboTax:

  1. Click on the "Forms" mode in the right-hand corner of the screen.
  2. Scroll down in the column on the left, "Forms in My Return," until you find Form 8995
  3. Click on the form and then select Delete Form on the bottom of the screen. Select Yes to confirm.
  4. Click on "Step-by-Step" in the right-hand corner of the screen
  5. Go back through the steps that DeanM15 provided in the above message to very that "No" is selected for the question "Is this a Qualified Business Income"
  6. Click on the Review tab to ensure that any errors are corrected. 
  7. Click on the Forms mode again and click on Form 1040 from the column on the left. Scroll down to line 10 on Form 1040 to verify that the amount has been removed.
Level 15

Gid rid of QBI

getting rid of form 8995 will not help if you have items designated as QBI.  the form will just reappear. what you may need to do first is eliminate items that generate the QBI if the tax law allows.  for example, dividends on line 5 on 1099-div marked 199A would have to be eliminated.   rental activity mat or may not be QBI. as a real estate professional they would be QBI and because QBI losses must be carried forward to future years to offset QBI income, they can not be eliminated.  however, if you were to have just one or two rental properties it would likely be in your description. but if you take the position those rental activities are not a trade or business in 2020, if would be difficult to argue they are in the future unless the number of rental properties were to increase.  you can't say schedule C or k-1's with QBI info are not a trade or business because the very definition of QBI involves a business. having said that if you have net QBI income from schedule C and/or K-1's. the IRS does not require you to take the deduction. 

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