How can I find out why I did not qualify for the QBI (Qualified Business Income) deduction?

Forum|Forum|1 year ago
March 15, 2025
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The TurboTax documentation says that if TurboTax determines that you don't quality for the QBI deduction then it does not even mention it. But according to my calculations, I should qualify for the QBI. I would like to see the TurboTax calculations to validate the assumptions.

RobertB4444

The TurboTax calculations aren't always math. Sometimes it's just deciding based on your entries.

Here's a good article on the QBI deduction. Take a look at it and then come back here with some specific questions and maybe we can help figure it out.

@ramiro-reinoso

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ramiro-reinosoAuthor

Thank you for addressing my question. I read the documentation that you suggested before but it was not addressing my question. It does not provide any details on the conditions for qualifying for the deduction. I played around with TurboTax Online and figured out a few things. TurboTax ask a few questions about the QBI and depending on the answers, it decides whether you qualify or not for the deduction. You can go over the questions again in the summary section of the self-employed income. In that section, there is hot link to go over the QBI questionnaire. The issue was with the question "Does all of your work was for a former employer?" without any further follow up questions that could further clarify your particular situation. If you answer "Yes" then TurboTax decides that you are not eligible for the deduction. But if you hit the "learn more" question mark icon, there is a lot more nuisance than a Yes/No answer. In my case, the right answer was "No" after reading the details about the question. After answering "No", then TurboTax calculated the QBI. It would be nice if TurboTax provided a summary after the questionnaire telling you whether you qualify or not for the QBI, and if not, provide the reason why.

DawnC

Employee

You can search for QBI to be taken to those questions and you can view Form 8995 to see the calculation. Take a look at at the last section of the TurboTax FAQ - specifically How the deduction is calculated - not for the faint of heart.

For more info on the above and other situations that confer eligibility to receive the QBI deduction, see this info from the IRS:

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