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posted Jun 1, 2019 12:38:41 PM

Do I claim the QBI if my business took a loss? It seems to increase my tax liability.

In Turbotax Home & Business, I have a schedule C business.  This year that business posted a $1500 LOSS.  When the software gets to the question regarding whether the business is a QBI (it meets the definition), and I say yes, my Federal Tax Due goes from $421 to $587.  If I answer no to the question, it stays at $421 owed.  That makes it appear as if it is disallowing 20% of my loss.  Can anyone explain this?

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Level 3
Jun 1, 2019 12:38:42 PM

If you have a business loss you would not get the QBI.  The QBI is 20% of your profit minus self-employed health insurance. 

The QBI is shown on line 9 of your 1040.  It shouldn't increase your tax liability.