BobYCPA
Level 2

Client has a small Schedule C which generated a profit of $1,510.  The 2021 Lacerte Tax Program is showing QBI of $1,407 (Income of $1,510 less allocated deduction for one-half of self-employment tax of $107) and a QBI deduction of $281.  The 2020 program reduced the QBI to zero by also showing an allocated deduction for self-employed health insurance.  Did I miss a change in this calculation for 2021 tax returns?  Or is Lacerte not calculating this properly?

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TaxGuyBill
Level 15

That has always been the case, and was specifically clarified in 2020.

 

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BobYCPA
Level 2

Thank you very much.  I guess I have a few amended returns to file for 2020.

 

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