QBI Error?

Forum|Forum|6 years ago
February 7, 2020
5 replies
17 views

I'm not sure TT is calculating the QBI correctly.

Last year, I had QBI of $553 and correspondingly got the 20% deduction ($107).
This year, the Form 8995 says on line 3 that I have a "Qualified business net (loss) of carryforward from the prior year of - $2,978."

I don't understand where that number of - $2,978 is coming from, since I didn't have a net loss, but rather a net business gain last year. The number - $2,978 doesn't show up anywhere on my prior year's tax return, so I don't see where TT is getting it from.
Is this likely an error, or am I missing something, because again this year I have a net business gain, and would expect to be able to deduct 20% of my QBI, but instead TT is subtracting that prior year "loss" from this year's QBI as a carryforward.

TurboTax Home & Biz Windows

JulieS

Level 15

The IRS instruction for line 3 is:

"Include prior year qualified loss carryforwards even if the loss was unreported or the trade or business that generated the loss is no longer in existence. Also, include the QBI portion of losses or deductions suspended from use in calculating taxable income in the year generated that are included in taxable income in the current year."

If you had more than one business last year, the carryover may be coming from the other business, even if it is closed.

If you had a home office deduction that you couldn't fully deduct last year, that could be the source as well.

If you have REIT dividends, your qualified dividends and net capital gains are considered here as well.

If you have any K-1 forms in your return, the loss could be coming from there.

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Gen_JoabAuthor

Level 3

Thanks for taking the time to provide an answer.
As it turns out, these aren't the problems. I just spent 1 1/2 hours on the phone with Turbo Tax. The guy couldn't figure it out either. For some reason, it keeps reporting a carryover loss from last year that I did not have related to any business. He decided it had to be an error in the software, but he couldn't figure out how or why the error was occurring. But it is an error that is costing me some of my due refund.

jlll

Level 2

Not working for me either !! And it looks like last year 2018 also had a reduced QBI and was incorrect.

When the [Not Included Box] is adjusted (duplicate the net amount value) the QBI seems to be calculated correctly ? Is this correct ?

Not sure why this has to be so confusing and so difficult to calculate. This is from the desktop software.

Gen_JoabAuthor

Level 3

I finally found the error. The problem was with TT software from 2018; it definitely made an error in calculation of my QBI, reporting a loss (and hence no deduction), when actually I had a gain in 2018.
But apparently Intuit caught the problem somewhere along the line, because when I launched my old 2018 software it did an update and then correspondingly CHANGED the entries and calculations. I know this because I still have the printed copy of my return from 2018, and the 2018 software now has different - but correct - entries, versus my old printed copy from last year. The software now reports that I actually qualified for a higher refund last year because of this error (wish I had caught that last year).
Now the problem is, my 2019 software had already transferred my information from the previous year before the update to 2018, so it pulled the incorrect information, and I can't see a way to get my 2019 software to "re-transfer" the correct info. If I do a manual over-ride, it won't permit me to e-file. But if I don't get the correct info transferred, then once again this year I will lose some of my refund again this year.

So, bottom line is that the error in the 2018 software cost me some refund both in 2018 and again in 2019!

Now my

LindaB1993

Level 7

Since you are using the Desktop version of TurboTax, this is my recommendation:

In the Forms Mode of the program, select the Form," Carryover Wks"
You can then, modify the carryover without generating an error. (This is the originating schedule)
If this worksheet is not immediately available, Select "QBI Schedule C"
Double Click on line #2 to hyperlink to "QBI Ded Summary"
Double click on line #3.. This will take you to "Carryover Wks"
Refer back to step 2.

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Gen_JoabAuthor

Level 3

Thanks for taking the time to reply. Your post is correct, because that's what I ended up doing. I tried a manual override on the "carryover worksheet" and it permitted the change and surprisingly still let me e-file despite the over-ride because it did not treat the over-ride as an error, so as at least my taxes should be correct this year.

sandynt

Level 2

I was getting QBI Error saying I had an Aggregrate Statement and would have to mail (I have two businesses).

I would delete QBI Schedule B and it would come back. Carryover Wks was not the problem.

I updated TT to get latest Software Update and then delete the QBI Component Form and it brought it back correctly (I had made changes to Schedule C for both Businesses).

Tammy1604

Level 2

I used TT and am now being audited for QBID calculation errors. So far I owe $3300 for 2020 and $3400 for 2019. This is a huge software error and everyone should use caution with trusting this calculation.

whateverlola

Level 2

Same thing is happening to me. Different loss carryover numbers, of course. But I too had a rental net profit, not a loss, for several years. So, when TT carries over this misinformation of a QBI loss, I would think it would falsely decrease my tax liability, (also therefore increasing my refund).

However, the crazy thing is when I override the line to reflect ZERO loss carryover, my refund goes up!

My tax liability should go up, refund down when I change data to show more let income.

This is very disturbing.