QBI Deduction not added

[quentaje]

I received the QBI deduction last year. I made even less this year than last, but the deduction is not being added. Why is that?

[ShirlynW]

There could be several reasons the deduction in not being added.  Without seeing your return, I cannot give you a definite answer. What type of business structure do you have? Do you have passive income?

[Mike9241]

you'll need to look to form 8995 or 8995A to see what's going on. that's where the computation is made.  if it's blank perhaps you did not check the box that the activity qualifies for the QBI 

[quentaje]

My business is a single-owner LLC. I have some income from dividend stocks, though it's not much (less than $50) and I had that last year as well. That's why I'm confused. Nothing has changed from last year to this year other than to have lower income/profit from my business, which is my only source of income (other than the dividend stocks).

[ShirlynW]

QBI does not include items such as:

• Items that are not properly includable in taxable income
• Investment items such as capital gains or losses
• Interest income not properly allocable to a trade or business.

For more information refer to this TurboTax "Help Article."

[quentaje]

I have business income that I'm not receiving the QBI Deduction on. Last year, I got the deduction with all the same situations as this year, except that last year I actually had a larger business income (still under the threshold). I don't understand why, if nothing but the lower business income amount has changed, I wouldn't receive the deduction again. Could there be an issue with the TurboTax software?

[AliciaP1]

You need to review your answers to the QBI questions in TurboTax since you may have missed marking the income as QBI.

You can review your answers to the QBI deduction questions in TurboTax Online by following these steps:

1. Open or continue your return in TurboTax
2. Search for self employed income (use this exact phrase, don't add a hyphen) and select the Jump to link at the top of the search results
3. Click Edit next to the line of work you need to change
4. On the Here's your XXX info screen scroll down to the Business Summary section and click Details for Qualified Business Income

@quentaje 

[quentaje]

So, this is one reason I think something is wrong with the app itself. When I search for "self employed income" (I verified that it was entered correctly without the hyphen), I don't get the "Jump to" link you mention.  This is what I get:

Mm, sorry, this is outside my expertise 🤖💧

Instead, I'm searching our help articles for related content...

Here's what I've found so far (tap any link to view full article) 👇

The links are all general information-"What self-employed expenses can I deduct?" "What if I didn't get a 1099 NEC or 1099-MISC but made money..." "Why am I paying self-employment tax?" "Does a 10999-NEC or 1099-MISC mean I'm self-employed?"

[ShirlynW]

Would you clarify, what is your business structure?

[quentaje]

LLC

[quentaje]

To clarify, single-owner LLC.

[ShirlynW]

Would you clarify, what type of income are you reporting? What type of business do you have?

[quentaje]

Consulting.

[JamesG1]

Are you reporting self-employment income on Schedule C Profit and Loss From Business?

If you are, does the Schedule C show a profit on the 2022 Federal 1040 tax return?  There will be no Qualified Business Income Deduction if there is no self-employment income.

If there is a profit on the 2022 Federal 1040 tax return, at the screen Here's your info, review Qualified Business Income under Business Summary to make sure that you meet the qualifications for the Qualified Business Income Deduction.

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages and Income.
• Scroll down to Self-employment.  Click Show more.
• Click on Start / Edit / Add to the right of Self-employment income and expenses.
• At the screen Your self-employed work summary, click Edit.
• At the screen Here's your info, scroll down to Business Summary.
• Review Qualified Business Income under Business Summary to make sure that you meet the qualifications for the Qualified Business Income Deduction.

@quentaje