I am qualified for qualified business income deduction but app won’t calculate it in the home page for money owed?

Forum|Forum|2 years ago
January 27, 2024
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Turbo tax tells me that I am eligible for a deduction that would effectively eliminate my federal taxes owed. This is the QBI deduction. However, after it tells me this, it fails to calculate it in my deductions. How do I make sure that it does?

TurboTax Deluxe Online

Best answer by AnnetteB6

The QBI (Qualified Business Income) deduction helps to reduce your taxable income. It does not directly reduce any taxes that you owe, only credits can do that.

The QBI deduction can be found on Form 1040 line 13. It comes into play just before your taxable income is determined.

Take a look at your Form 1040 to be sure that there is an amount shown on line 13 for the QBI deduction. Use these steps to preview your Form 1040 while you are working in your TurboTax Online return:

In the navigation area on the left side of your screen, click Tax Tools to expand your choices
Click Tools, which will open the Tool Center
Click View Tax Summary under “Other Helpful Links…”
Click Preview My 1040 to see your actual tax form

If you are using a CD/downloaded version of TurboTax, you can view your Form 1040 by clicking Forms in the upper right corner of the screen.

AnnetteB6Answer

The QBI (Qualified Business Income) deduction helps to reduce your taxable income. It does not directly reduce any taxes that you owe, only credits can do that.

The QBI deduction can be found on Form 1040 line 13. It comes into play just before your taxable income is determined.

In the navigation area on the left side of your screen, click Tax Tools to expand your choices
Click Tools, which will open the Tool Center
Click View Tax Summary under “Other Helpful Links…”
Click Preview My 1040 to see your actual tax form