Final review error on Schedule C QBI 2022 loss carryovers

Forum|Forum|3 years ago
March 3, 2023
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I have Schedule C QBI Loss carryovers for this year but can't find any Regular Tax carryovers for Schedule C suspended losses on my prior year tax return. I'm getting an error on the 'Carryovers to 2022 Smart Worksheet' that states "QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes."

I'm assuming that I don't have Regular Tax carryovers for prior year losses on Schedule C because these losses pass through to offset other income on my 1040. Why is this error being triggered, and is it safe to ignore it and file?

TurboTax Home & Biz Windows

Mike9241

there may be no regular loss carryover. a schedule C loss can be used to offset other income. but the net QBI utilized can not be negative so you could have a QBI loss carryover with no schedule C loss carryover. if all of the schedule C loss is not used to offset other income. you have to compute whether or not you have a net operating loss, Turbotax does not compute NOLs using form 1045 Schedule A. if you do the NOL flows to schedule 1 line 8a not schedule C.

clint44Author

Thanks for your response Mike. That's seems to be exactly the situation I'm in, I don't have any NOL carryovers, just QBI carryovers. Which is why it seems the carryover worksheet is filled in correctly, just not sure why Turbotax is expecting there to be a regular tax loss carryover associated with the QBI loss carryover.