Turbo Tax carried over an incorrect amount from Schedule C.

[KathrynG3]

There may be some tax rules that TurboTax is handling behind the scenes. What are you seeing?

There is a new deduction after the Tax Cuts and Jobs Act called the Qualified Business Income (QBI) Deduction that further reduces your net income by 20% if you qualify for it.

[vgmarkman]

Hello,

I am trying to do my taxed on Turbo Tax for the first time. Everything went well until I got to the QBI.

My 2019 Schedule C showed a loss of -$885 which also reduced my total 2019 QBI.

Yet it shows up again against my 2020 QBI effectively reducing my eligible QBID by $177. 

How can I remove or zero out this carry over of $-885 on form 8995?

Thank you,

Veronique

[Irene2805]

The total loss on your 2019 Schedule C should have been taken in in 2019 and not carried over, unless you did not materially participate in the business and the loss would be considered passive.

If this is not the case and you are using the CD/Download edition of TurboTax, you can change this by going into Forms Mode and making the change on the Schedule C.

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 [business name].  The form will appear on the right side of the screen.
3. On the Schedule C, first check that the "material participation" box is marked on line G.
4. Scroll down to the Carryovers to 2020 Smart Worksheet.  If there is a number on Line B - Schedule C suspended loss, delete it.
5. While you're in Forms Mode, you might also want to review Form 8995 - QBI deduction.
6. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.  

@vgmarkman

[vgmarkman]

It was taken in 2019. That's the point. the -$885 was part of the 2019 other income total as well as part of the total to calculate the 2019 QBID. So 2019 is done and over with, nothing should carry over.

Yet your online portal fished the $-885 from my schedule C loss and incorporated it on form 8995, line 3 as -$885 which reduces my total QBI and therefore my QBID.

How do I make Form 8995, line 3 ZERO instead of negative 885 on your online platform?

[vgmarkman]

To clarify: 

Your online portal fished the $-885 from my 2019 schedule C loss and incorporated it on my 2020 form 8995, line 3 as -$885 which reduces my total QBI and therefore my 2020 QBID.

How do I make my 2020 Form 8995, line 3, ZERO instead of this -885 on your online platform?

[Irene2805]

To remove the loss that carried over from 2019, please follow these steps:

TurboTax Online

1. On the Wages & Income screen, scroll down to Other Business Situations.
2. Click the Start/Revisit box next to Net Operating Loss/QBI Carryforward Loss.
3. On the next screen, 2019 Net Operating Loss, remove any number in the Net Operating Loss Carryover box.
4. The next screen, 2019 Qualified Business Income Loss Carryovers, will allow you to remove any numbers for the QBI business loss carryforward.
5. Click Continue when done.

TurboTax Home & Business (CD/Download)

1. While in your return, click the Business tab.
2. In the Less Common Business Situations section, click the Start/Revisit box next to Net Operating Loss/QBI Carryforward Loss.
3. On the next screen, 2019 Net Operating Loss, remove any number in the Net Operating Loss Carryover box.
4. The next screen, 2019 Qualified Business Income Loss Carryovers, will allow you to remove any numbers for the QBI business loss carryforward.
5. Click Continue when done.

If this is not the case and you are using the CD/Download edition of TurboTax, you can change this by going into Forms Mode and making the change on the Schedule C.

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 [business name].  The form will appear on the right side of the screen.
3. On the Schedule C, first check that the "material participation" box is marked on line G.
4. Scroll down to the Carryovers to 2020 Smart Worksheet.  If there is a number on Line B - Schedule C suspended loss, delete it.
5. While you're in Forms Mode, you might also want to review Form 8995 - QBI deduction.
6. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.  

@vgmarkman

[vgmarkman]

Excellent input, Irene! Problem solved!

Thank you for understanding my question and directing me to the right place. 

Really excited about filing with Turbo Tax for the first time! 

[vgmarkman]

Hello, I am using your platform online for the first time and would like to see how line 16 on my 1040 has been calculated. Where can I find the worksheet that details the breakdown specific to my return?

Also, how do I change what I want to do with my refunds. In this case, I want my federal refund to be applied to 2021 quarterly payments and my State refund to be refunded to me.

How do I do that?

Thank you, Veronique

[ThomasM125]

Line 16 on your form 1040 is your income tax. It would be calculated based on the IRS tax tables, unless one of the boxes under line 16 were checked (for form 8814 or 4972 for instance), in which case you would have to look for a tax worksheet in the supplemental schedules that would be included with your tax return.

To have your refund applied to next year, follow these steps in TurboTax:

1. Other Tax Situations
2. Additional Tax Payments
3. Apply refund to next year

[vgmarkman]

But what if I want my federal refund to be applied to 2021 quarterly payments  but not my State refund?

How do I do that?

[Simphoebe]

On page 2 of my Schedule C in Part V Other Expenses

Uber Service Fee- 2486

then in the following boxes it breaks down all the things Uber included in that Fee.

But then in line 48 it totals them.

This seems to double the actual amount.

Please let me know.

My Email is: [email address removed]

Can you include my question with your reply.

Thanks,

John Carroll

[GeorgeM777]

It appears as if you included the total Uber expense in Part V, but you also included all of the separate Uber expenses that make up the total Uber expense.  Perhaps the best option is to remove the total and keep the separate individual expenses.  The breakdown of expenses, rather than just including the total expense, may be the better option for you because you will have a record of such expenses going forward which you can use when comparing your business expenses year to year. 

@Simphoebe

[Simphoebe]

The Turbo Tax program asked me to enter the amounts in both sections.

Tried to get around it, but it wouldn't let me.

I understand the error, but it's a TurboTax glitch with Uber info.

It seems I have to wait for my return to come back before I can fix the error.

Since I paid for TurboTax, and the error, I hope it is a free re-filing.

[ThomasM125]

@Simphoebe You can file an amended return using TurboTax for no additional fee. You will see the option on your Home Page in TurboTax, then under Your tax returns and documents, look for an option to Amend/Change your return. You should wait until you receive your refund or the IRS has processed your return, if you sent a payment, before you amend your tax return.