QBI Component Worksheet

[karunt]

It appears that TurboTax has been calculating previously disallowed losses from qualified business incorrectly the past few years. I think this might have happened because of bugs in prior versions of turbo tax which I'm told have been resolved now, but clearly didn't correct the amount of previously disallowed losses on my returns because Turbo Tax always populates new returns based on data from previous returns (which would have been incorrect). What's the best approach to fixing this issue so going forward the amount of previously allowed losses is correctly reflected in the QBI Component Worksheet?

[JotikaT2]

I recommend looking at the copies of your prior year tax returns to obtain the amounts that should have been carried forward. Then, as long as none of these amounts were utilized in prior years, manually enter that total on your 2024 tax return (or keep a record of it to enter when you prepare your 2025 tax return.

Please see this FAQ for steps to obtain a pdf of your prior year tax returns.

Once you have your returns, look for Form 8995, line 16 to determine how much of the QBI loss should have been carried over to the following year.  Be careful to not count any amounts twice in case there were carried forward correctly.

Once you have calculated the correct amount of the QBI carryover that needs to be entered into your 2024 income tax return, log back into TurboTax.  If you are using TurboTax Desktop, select the Business tab.  Proceed through the screens until you see "Let's gather your business info."  Scroll down to the section titled Less Common Business Situations and select start to the right of Net Operating Loss/QBI Carryforward Loss.

Continue through the Net Operating Loss screen and when you see the screen titled "Qualified Business Income Loss Carryovers," enter your calculated amounts.  These entries will pull into your 2024 tax return and should pull forward into your 2025 tax return.