Question

Turbo Tax carried over an incorrect amount from Schedule C.

Forum|Forum|6 years ago
February 9, 2020
1 reply
0 views

No text available

TurboTax Self Employed Online

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.

V

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

I

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.

Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar.
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.
On the Schedule C, first check that the "material participation" box is marked on line G.
Scroll down to the Carryovers to 2020 Smart Worksheet. If there is a number on Line B - Schedule C suspended loss, delete it.
While you're in Forms Mode, you might also want to review Form 8995 - QBI deduction.
To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.