QBI PASSIVE OP LOSS

Forum|Forum|2 years ago
February 1, 2024
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On my grandsons it’s saying HBI passive op loss on the line it says —$7954

His boss was not taking Taxes out. So he’s filling out a 1099. My grandson does not own a business. We’re trying to figure out what this QI passive op loss is. It will not let him continue filling out the tax papers until he accepts or denies but we still don’t know what that -$7954 is it’s saying it’s from 2022. Please help

Ncsrol55DianaAuthor

Should say QBI passive op loss in my question to you all

DianeW777

It depends. It appears that he has expenses in excess of his 1099 income in the amount of $7954, possibly on his 2022 tax return that would carry over as a 'Qualified Business Income' (QBI) deduction. If this is his only income and it's a loss, then this will continue to carry forward until he can use it.

The 1099-NEC indicates your grandson is self employed, however he can get an answer from the IRS.

The Form SS-8 helps to differentiate between an employee and an independent contractor (self-employed). Take the time to review this form and decide if you have an employer/employee relationship. If the person in charge tells you when to be there, how to do your work and provides all the equipment necessary to do your work then it's quite likely this is an employer.

Instructions for Form SS-8
What is Form 8919? (To be used if you want to file as an employee, you will need all of your income information)

You are allowed to report the income as an employee if you believe that is the relationship you have, however, this will not go well with your employer. The IRS will go after them for payroll taxes which could mean penalties.

You can also continue to report your earnings as a self-employed independent contractor. To file like this you will need to use TurboTax Online Self-employed or TurboTax CD/Download Home & Business.