I am receiving this error in the Schedule E worksheet for 2024:
The software wants me to remove the $5,004 entry, however this entry is accurate if you look at the 2023 Schedule E Worksheet and Form 8582 Part VII (a). There is no regular tax or AMT suspended loss to input. I am at a loss as to why this error is occurring, thanks in advance for any assistance.
It would be helpful to have a TurboTax ".tax2024" file to test this issue further.
If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions:
In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose File >> Share.)
We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution.
@PatriciaV I am using the online version of Turbo tax and can only download my .tax files for 2023 and earlier. Are there different steps to download the diagnostic file you can use on Turbo Tax online?
@PatriciaV I actually figured it out. The token number is 1264049
Please provide the complete token number, which has a long number, a dash, then a shorter number. The instructions for TurboTax Online are below. Please include the name of your State(s) as well.
In TurboTax Online, open your return, go to the black panel on the left side of your program and select Tax Tools.
@PatriciaV Thanks, I followed the instructions, and this is what it gave me, the token number is not formatted as you mentioned: 1264325. I have PA and WV as my states as well.
for your information, it is possible to have a QBI passive loss carryover but not a passive loss carryover, they are two separate things
example passive loss from rental real estate $10K, QBI passive loss also $10K
adjusted gross income $140K
the passive loss for regular tax purposes is allowed but since the QBI is a loss, it doesn't just disappear but becomes a carryforward to offset QBI income in future years..
Thanks, I feel like that is the situation I am in, but the software is not allowing me to carryforward the QBI one. Very frustrating.
@PatriciaV Good morning, have you had a chance to review the test file?
The resolution is to enter 1 or -1 for the regular carryforward. This will allow the QBI to be carried forward to next year's return.
The experience has been reported to our development team for investigation. It's unlikely this will be addressed before the filing deadline.
Entering 1 or -1 in the field identified in the original post does not work. Can you please explicitly clarify where we are to 'enter 1 or -1' so we don't lose the carryforward.
The negative 1 should be entered in the Carryovers to 2024 Smart Worksheet found at the bottom of the Schedule E worksheet on Line G in the Regular Tax column. This is the form that appears in the Smart Check popup window. See screenshot below.
You can also open this form in TurboTax for Desktop using Forms Mode.
After putting -1 in the Regular Tax column and re-running my Smart Check, results in a new entry being identified as missing:
Following up. I did check and 2023 had no operating losses. I zero'ed those 3 entries and things seem to be ok. However, in 2022 had a QBI passive activity operating loss and it was applied to income in 2023 taxes. So it seems there should not be a QBI carryover for my passive operating loss. Perhaps a bug in the code that carries it forward not seeing it was applied in 2023. Or, maybe I'm missing something.
Hence: blank out QBI suspended loss as Turbotax suggested?
Yes, remove the QBI suspended loss since it was used up in 2023.
I put -1 in the regular loss column and then later got this error:
"Schedule E Worksheet -- Schedule E Two Year Comparison: Sch E loss-priry yr amt must be less than or equal to zero.
Sch E loss-pry yr amt -1.
"
-1 is less than or equal to zero, so I don't know what to do here.
If you had no carryover loss from last year, enter zero. If that doesn't resolve the message, try a positive one.
I had losses (-620) carried over from 2023 in both the 'Regular Tax' and QBI columns.
During final check for 2024 TT showed the same negative value in the QBI carryover column but nothing in the Regular Tax column, and that was flagged as an error. I tried entering 1 (i.e. positive) and TT said it must be negative so I tried -1 and it accepted that but then got the later error I described previously--saying that -1 was not zero or negative. Help please!
FWIW I had very large Medical Expenses in 2024 and large Capital Losses so maybe a unusual combination of carryover is present
This experience has been reported to our development team and should be resolved with the update scheduled for Friday March 7, 2025. Because updates are released after business hours Pacific time, we recommend waiting until the day after to run Review again.
Note that TurboTax Online is automatically updated after midnight on form release dates. TurboTax for Desktop is updated when you first open the program.
We appreciate your patience while your concerns were addressed by our programmers.
@PatriciaV Hmm. The update did not fix the problem. I still get the error "Schedule E Worksheet (property name): QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes." QBI Passive loss c/f -642
I sent a diagnostic return, the token number is
112377046-70468638
Please help. This is preventing me from filing! Thanks.
Since you have a carryover loss on your 2023 return, enter the regular operating loss carryover in Carryovers to 2024 Smart Worksheet, Row G, Regular Tax column.
Now scroll down to the continuation lines by year and enter the same amount for 2022 in the Regular Tax column (this is the row with the QBI amount). Also, enter zero on the line for 2023.
These entries should resolve the Smart Check error messages and allow you to file your return.
[edited for specific instructions 3/9/2025 | 11:23 AM PDT]
@PatriciaVShouldn't I have the same loss carried forward to 2025?
Row G, QBI column in the "Carryforward to 2025 Smart Worksheet" is set to 0 and I can not edit it. How can I make it so TT will import the carryover next year?
Ignoring that question, I tried the changes you gave previously - at least I think I did. But then another error occurred, saying "Passive Operating Loss should not be greater than total loss ($-624)".
I will attach three screenshots: The first two showing the entries I made per your instructions, the third the new error.
Your first entry on the Carryover worksheet should be (642) not (624). The difference is the 18 at the top of the third screenshot.
Check the Activity Summary Smart Worksheet above the Carryforward to 2025 Smart Worksheet to see how your Passive carryover loss was applied to the current year income. Any unused loss from this worksheet flows to next year.
@PatriciaV OK, thanks for that correction, which allows Fed & State checks to pass.
However, shouldn't the 642 suspended QBI loss be carried forward to 2025?
I can not find a "carry forward" in forms view which mentions QBI passive loss at all...
The QBI passive loss carryover is also displayed in the continuation page of the Carryover Worksheet in the list by year. So, the value is not lost in case you need to enter it next year. If the transfer process works as expected for tax year 2025, you shouldn't need to make a manual entry for this carryover.