Question

Qualified Business Income Deduction

Forum|Forum|5 years ago
March 2, 2021
1 reply
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I have used Turbotax for several years to file my returns -- thanks so much!! This year Turbotax gave me a QBI deduction but last year with very similar financial data it did not. Why would I be eligible in 2020 but not in 2019?

Thanks!

Eric

TurboTax Home & Biz Windows

E

emarcus54 Author

Last year though the business was profitable it had a carryforward loss. Is that what caused there to be no QBI last year?

J

JoannaB2

Qualified Business Income (QBI) form 8995-A is the net amount of qualified items of income, gain, deduction and loss from any qualified trade or business, including income from partnerships, S Corp, sole proprietorships, and certain trusts. Qualified Business Income deduction is up to 20% of net business income. If you have business loss, you can't use QBI for that particular year.

See, qualified business income under section 199-A, link.