There are several reasons why the Qualifying Business Income Deduction QBID isn't calculating in a tax return:
- No QBI - A return that has no qualifying business income will have no QBID. There are several reasons why QBI in a return may be $0 or less. For example:
- The taxpayer received Schedule K-1 that includes no Section 199A information, or the K1 includes Section 199A information that hasn't been entered in the return.
- The activity reported on Schedule C, E, and/or F isn't indicated that it qualifies for QBID.
- The taxpayer has a qualified business net loss carryforward from the prior year that is greater than their QBI this year.
- No taxable income before QBID - Looking at Form 1040, if AGI minus standard or itemized deductions equals $0 or less, no QBID will calculate since it's irrelevant.
- Taxable income before QBID less net capital gain equals zero or less - If AGI minus standard or itemized deductions minus net capital gain is $0 or less, no QBID will calculate since it's irrelevant. See the Form 8995 instructions for line 12 for an explanation for how net capital gain is determined for the tax return you are completing.
Additional Information:
IRS: Instructions for Form 8995, Qualified Business Income Deduction