Question

QBI/NOL

Forum|Forum|1 year ago
March 11, 2025
1 reply
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In 2021 and 2020, I filled out the portion of my tax return incorrectly in the "Is this Qualified Business Income". Instead of choosing "Yes" like I should have, I chose "No". Therefore, it did not generate an 8995 as both years had losses. Do I need to amend these tax returns so I can carryover the NOL's?

T

ThomasM125

The correct thing to do would be to amend the returns to report the QBI losses. At a minimum, you should report the carryover loss when you enter your business income and expenses on the screen that says Let's gather your business info, under the menu that says Less Common Business Situations, choose Net Operating Loss/QBI Carryforward loss and enter your QBI loss carryovers from previous years. Otherwise, you may overstate your QBI deduction in the current year.

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K

kow15Author

Okay so for the “Explanation” I should put 2020 and 2021 NOL? Then the next page asks for 2023 NOL so I just put that number there and leave out the 2020 and 2021 amounts?

Thank you!