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October 26, 2024
Solved

Turbo Tax Premere is calculating a "Qualified Business Income Deduction" when in fact I'm not qualified. My CPA has indicated this is a red flag for the IRS.

  • October 26, 2024
  • 2 replies
  • 0 views
I'm unable to file my return if I overwrite the "Qualified Business Income Deduction" amount.  
Best answer by Hal_Al

After entering all your "business"  income and expenses, you will reach a screen titled "Is this qualified business income?" Check "No, none of this work is qualified". TurboTax will, usually, have pre-checked yes. But, you are allowed to change it to No. 

 

What is the source of this income and why does your CPA say it's not qualified?  Most for profit activity, involving work, is qualified.  

 

If you have a form 1099-Div, with an amount in box 5, TT will treat that amount as QBI (qualified business income) and it usually is qualified.

2 replies

Employee
October 26, 2024

You may remove the Qualified Business Income Deduction by removing the income that qualifies you for the deduction. If IRS form 8995 or IRS form 8995-A are included in your tax return, line 1 lists the income that qualifies you for the Qualified Business Income Deduction. 

Hal_Al
Hal_AlAnswer
Employee
October 26, 2024

After entering all your "business"  income and expenses, you will reach a screen titled "Is this qualified business income?" Check "No, none of this work is qualified". TurboTax will, usually, have pre-checked yes. But, you are allowed to change it to No. 

 

What is the source of this income and why does your CPA say it's not qualified?  Most for profit activity, involving work, is qualified.  

 

If you have a form 1099-Div, with an amount in box 5, TT will treat that amount as QBI (qualified business income) and it usually is qualified.