QBI Error?

[Gen_Joab]

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.

[JulieS]

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. 

[Gen_Joab]

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.

[Gen_Joab]

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]

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

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

[Gen_Joab]

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]

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).

[jlll]

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.

[sandynt]

just delete all QBI forms (the Component form is the MAIN one - DELETE IT FIRST) and it should fix everything.

[jlll]

Nope.  QBI is still zero.

[DavidS127]

This response relates to aggregated businesses, not the QBI carryforward.  There are instructions for how to correct the carryforward in TurboTax CD/Download in a previous post to this thread.

If you want or need to aggregate any businesses, the return is still print and mail only in TurboTax.  TurboTax is working with the IRS to enable e-file for aggregated QBI businesses and the QBI netting/carryforward worksheet.  But, there isn’t a date for when that will happen.

You'll need to decide whether or not you want or need to aggregate any businesses in 2019.  Once you aggregate, you must continue to aggregate in future years.  But, not aggregating last year does not preclude you from aggregating this year.    Refer to the IRS instructions for Form 8995-A for more information on aggregation.

If you do not need or want to aggregate any businesses, here is how to “un-aggregate” them in TurboTax Online or TurboTax Download/CD:

1. Go to Delete a Form: In the left menu, select the dropdown arrow next to Tax Tools and then under that select Tools; in the pop-up window Tool Center, choose Delete a form.
2. Find the QBI Component form for the aggregated businesses.  Delete that QBI Component sheet.
3. Now, go to Review and start the review routine.
4. You will have an error for each business that no longer has a QBI Component form.  For each of those businesses, you will see the “primary” form for that business (Schedule C, Schedule E, K-1). It will be highlighted for Question A in the Qualified Business Income Deduction Smart Worksheet.
5. Double click in the highlighted Question A box, and you will get a pop-up asking you to link to a QBI component worksheet.  Create a new copy for that business (e.g., give it the name of that business).
6. Continue until you have created a separate QBI component worksheet for each business that you do not want to aggregate.

Note that you could also use these instructions to aggregate businesses.  Delete the QBI component worksheets for each business you want to aggregate, go to the Review, and link all the businesses to the same QBI component worksheet.  But, you will not be able to e-file your tax return and must print and mail the return.

[JoeBudelis]

I thought I had that same problem with a much larger deduction there! However, further investigation showed that the QBI amount carried forward was the disallowed passive loss in 2018. So it appears that the Turbo Tax calcualtions are correct. That disallowed passive loss was not subtracted from QBI in 2018.

[KE149]

I had errors from 2019 QBI not transferring into 2020 for each one of my K1s.  I had to open up 2019 forms and manually input the information into 2020.  Is this a glitch in 2020 or is there something that I should be doing differently?

[DaveF1006]

it depends. Are you talking about disallowed QBI that was suppose to be carryforward into 2020? Please clarify your 2019 QBI errors.

[KE149]

In 2019 taxes, in the K1 section,  Statement A information, Section D2, page 7, section called "Qualified Business Income Carryovers".  There are entries in the table column "Carryforward to 2020". 

An error on my 2020 Turbotax asked me to manually enter the information.  I was able to find it from my 2019 taxes, but I think it might be a glitch?  I'm using Turbotax Home and Business.