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QBI Worksheet - Regular Tax vs QBI - what does it mean?

I'm trying to fill in the QBI worksheets to add in past years' at-risk business losses. These didn't transfer from past years' returns.

 

I'm confused by the federal carryover worksheet and the QBI Component worksheet for disallowed losses. I feel like Turbotax is adding the two together and effectively doubling my loss for this year but I don't know how/where to correct this. 

 

I'm also unclear in the Step-by-Step on the At-Risk Carryovers as to the difference between the Regular Tax column and the QBI column -- where do I source this information? The instructions say nothing about Regular Tax carryovers --- what schedule would those come from and if I entered the same thing in that column as the QBI column, are those redundant/duplicative? Should I only be entering my loss numbers in one of those columns? (Maybe that's my error.)

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1 Reply
PatriciaV
Expert Alumni

QBI Worksheet - Regular Tax vs QBI - what does it mean?

Yes, you should enter both Regular and QBI carryovers if they were reported on your prior year return.

 

Your Passive Activity Losses are reported on Form 8582, which is included in your federal tax return. Unallowed Losses on page 2 are generally carried over to future tax returns. QBI carryovers are reported on Form 8995-A.

 

TurboTax tracks both Regular and QBI carryovers at the bottom of Schedule C and Schedule E in Smart Worksheets that are not part of the official IRS forms. 

 

Regular tax carryovers may be used to offset current year income for related activities. QBI carryovers are added to current year QBI as part of the QBI Deduction calculation. These two carryover amounts are often the same. But they are used differently and are not added together.

 

For more info, see How do I report a business loss or QBI carryover?

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