A losing year for your combined business income doesn’t just mean no QBI deduction that year — the negative amount carries forward and eats into next year’s deduction too.
How it works
Subtracting the prior-year QBI loss carryforward from this year’s QBI gives the net QBI actually available for the 20% deduction; any carryforward not fully absorbed this year rolls forward again into next year.
What this does not include
This does not include the taxable-income-based cap this site’s separate qbi-deduction calculator applies, or the wage/property limitations that kick in above certain income thresholds — this calculator isolates just the carryforward mechanic.
How to use this calculator
- Enter the prior-year QBI loss carryforward and this year’s combined QBI.
Frequently asked questions
Does the QBI carryforward ever expire?
No — like many other loss carryforwards in the tax code, it continues indefinitely until fully absorbed by future positive QBI.
Does a negative QBI year mean no other deductions are available?
No — this only affects the specific §199A pass-through deduction; other business losses can still offset other income in the loss year through normal net operating loss rules.
Is the carryforward tracked per business or in total?
It’s tracked as a combined, aggregate QBI figure across all of a taxpayer’s qualified trades or businesses, not separately for each one.
