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irishdaisy
New Member

How do you populate the "QBI wksht for previously disallowed losses, if present" on the QBI Deduction Smart Worksheet? What value is it looking for, nothing seems to work

This field is popping up as a review item but it won't except anything that I enter in this field
4 Replies
DavidS127
Expert Alumni

How do you populate the "QBI wksht for previously disallowed losses, if present" on the QBI Deduction Smart Worksheet? What value is it looking for, nothing seems to work

That box is not looking for a number, but rather a "QBI Component worksheet" to which to link.  Delete anything (including any spaces) you have in that box, and then "double-click" on the empty box.  You should see a QBI Component worksheet for your Schedule C  or Schedule E worksheet in the list of options.  If so, link to that QBI Component worksheet.

 

TurboTax somehow "believes" you have previously disallowed QBI losses.  Check the section at Federal>>Income>>Other Business Situations>>Net Operating Loss/QBI Carryforward Loss to look for any entries related to a QBI Carryforward Loss.

 

This is a new thing in 2019, because the QBI deduction just started in 2018.  Now, for the first time, QBI losses from the previous year (2018) are being used to offset QBI income in the current tax year (2019).

 

If you had disallowed QBI from 2018, that needs to be carried to your 2019 tax return. That 2018 disallowed QBI loss should be on some sort of carryover worksheet from your 2018 return. If you used TurboTax in 2018, it will be on the 2018 Federal Carryover Worksheet, in a section entitled "Qualified Business Income Deduction (Section 199A) Carryovers".  

 

As background, when you have a business that qualifies for the Qualified Business Income (QBI) deduction, your deduction is based on the income of the "QBI business".  No QBI business income, no deduction.  And, if you have a loss on your QBI business, that loss gets tracked and "carried forward" to be offset against next year's QBI business income when calculating that next year's QBI deduction.

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ggonzalez1019
Level 1

How do you populate the "QBI wksht for previously disallowed losses, if present" on the QBI Deduction Smart Worksheet? What value is it looking for, nothing seems to work

Nothing happens when I double click. How can I link to "Qualified Business Income Deduction (Section 199A) Carryovers" from my 2018 return?

DavidS127
Expert Alumni

How do you populate the "QBI wksht for previously disallowed losses, if present" on the QBI Deduction Smart Worksheet? What value is it looking for, nothing seems to work


Make sure there isn't a popup box hiding behind another window when you double click.  If you have the Download/CD version of TurboTax, you can do this in Forms mode (icon top right blue bar), Question H 3d in the D2 Section of your K-1 or Schedule E, or under Question H 3d of the QBI Smart Worksheet for Schedule C (scroll down to get to those sections).

 

Go to the section where you enter your prior year QBI losses, and check to see if your prior year QBI losses are entered there:

 

Income>>Other Business Situations>> Net Operating Loss/QBI Carryforward Loss.  In TurboTax Download/CD versions, you use the path Income>>Less Common Business Situations>>Net Operating Loss/QBI Carryforward Loss.

 

Those prior year QBI carryforward losses would have been on a carryover sheet from your 2018 tax return.  When the 2018 tax return was prepared with TurboTax, the 2019 return will have the 2018 carryover for QBI loss carryforward on the Federal Carryover Worksheet, Line 29.

 

@ggonzalez1019

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DavidS127
Expert Alumni

How do you populate the "QBI wksht for previously disallowed losses, if present" on the QBI Deduction Smart Worksheet? What value is it looking for, nothing seems to work

Another thing to try is to go back through all the QBI questions for your business.  For the question "Should this business be treated as part of a combined business" (wording may be slightly different depending on your type of business). Unless you are aggregating with other QBI businesses choose "This business is independent of any other activities".  This may link your "source" form to a QBI Component worksheet, and resolve your issue.

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