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Level 1
posted Mar 3, 2021 11:58:13 AM

Mistake on form 8995 (QBI)?

I have income from both wages and schedule C business.  Our total, married filing jointly, income is well under the limit to receive a QBI deduction.

As far as I can tell, my total schedule C net income (line 31) should qualify for the QBI.  Before filing, I printed out a draft of my return to go over everything.  The amount that was automatically transferred to form 8995 (line 1(c)) - on which the QBI deduction is calculated - is significantly less than the net income in schedule C.  I had a loss last year, but that is properly added to line 3 of form 8995 and deducted from the original number reported on line 1(c).

So the question is, what accounts for the discrepancy between my net schedule C income and the base QBI used in form 8995?

I've been on the phone and chat with multiple advisors at TurboTax now for a total of about two hours, and have been frustrated by the response.  I am thinking now that there is a glitch in the software - or is there any other way to account for this?

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1 Best answer
Expert Alumni
Mar 5, 2021 1:45:06 PM

The amount appearing on Form 8995, line 1(c) is line 31 of Schedule C minus the deduction for 1/2 of the self employment tax.

 

If you are using TurboTax CD/Download you can view the Qualified Business Income Deduction Smart Worksheet by going in to Forms Mode.  To do this please follow these steps:

  1. Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar. 
  2. In the Forms in My Return list on the left, click Schedule C (bsns name).  The form will appear on the right side of the screen.
  3. Scroll down to the Qualified Business Income Deduction Smart Worksheet, below line 48.  
  4. Section E of the worksheet shows the calculation of the "Allowable Sch C Profit (loss) from the business."  This figure transfers to Form 8995, line 1(c).
  5. You can view the form on the screen or you can print a copy by clicking the Print box at the bottom of the screen.
  6. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.  

 

If you are using TurboTax Online, you can print/preview the return by following these steps:

  1. In the black bar at the left side of your screen, click on TaxTools > Print Center 
  2. On the TurboTax Print Center screen, click Print, save or preview this year's return.
  3. Mark the box(es) for your federal and/or state return.
  4. In the next section, select Include government and TurboTax worksheets (optional)
  5. Click on the View or print forms box. 
  6. When the print screen comes up you can select the pages to be reviewed/printed.

4 Replies
Expert Alumni
Mar 5, 2021 1:45:06 PM

The amount appearing on Form 8995, line 1(c) is line 31 of Schedule C minus the deduction for 1/2 of the self employment tax.

 

If you are using TurboTax CD/Download you can view the Qualified Business Income Deduction Smart Worksheet by going in to Forms Mode.  To do this please follow these steps:

  1. Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar. 
  2. In the Forms in My Return list on the left, click Schedule C (bsns name).  The form will appear on the right side of the screen.
  3. Scroll down to the Qualified Business Income Deduction Smart Worksheet, below line 48.  
  4. Section E of the worksheet shows the calculation of the "Allowable Sch C Profit (loss) from the business."  This figure transfers to Form 8995, line 1(c).
  5. You can view the form on the screen or you can print a copy by clicking the Print box at the bottom of the screen.
  6. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.  

 

If you are using TurboTax Online, you can print/preview the return by following these steps:

  1. In the black bar at the left side of your screen, click on TaxTools > Print Center 
  2. On the TurboTax Print Center screen, click Print, save or preview this year's return.
  3. Mark the box(es) for your federal and/or state return.
  4. In the next section, select Include government and TurboTax worksheets (optional)
  5. Click on the View or print forms box. 
  6. When the print screen comes up you can select the pages to be reviewed/printed.

Level 1
Mar 7, 2021 8:39:08 AM

Right - also the SEP contribution is deducted.  The amount of this deduction can also be found on Schedule 1 (and is transferred over to 1040).  Took me some 4 hours on the phone with different Turbotax people to figure this out; they should be better trained.  I am using Turbotax Online and did print out all the forms.  The QBI Smart Worksheet was buried in the back and missed it at first.

New Member
Apr 12, 2024 5:11:28 PM

What if you need to correct the form?  How do you access it on TT online version?

Expert Alumni
Apr 16, 2024 7:53:21 AM

There is no forms mode in the online version.