Marie Posted February 20, 2022 Report Share Posted February 20, 2022 I've had 6 clients that after I have checked and created, have changed when I get ready to efile. The 8995 taxable income is changing, because of the line 12b charitable deduction. Was there a program change? Earlier, the program did not subtract the $600 deduction from AGI, and now taxable income is deducting the charitable deduction from AGI. Was there a date where the program changed? It had to be a program change. Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 20, 2022 Report Share Posted February 20, 2022 If the program was not subtracting the $ 600 charitable deduction before then it was wrong. Apparently you have experienced an "unannounced correction" to bring the program in line with Form 8995 instructions. 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 20, 2022 Report Share Posted February 20, 2022 Wait, now the $600 charitable deduction is reducing AGI? Wasn't that 2020 only for a maximum $300? Doesn't the 2021 charitable deduction NOT reduce AGI? 1 Quote Link to comment Share on other sites More sharing options...
Marie Posted February 20, 2022 Author Report Share Posted February 20, 2022 it is reducing AGI for the 8995 QBID Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 20, 2022 Report Share Posted February 20, 2022 16 minutes ago, Marie said: it is reducing AGI for the 8995 QBID Last year it reduced AGI, this year it was moved down below the line to reduce Taxable Income. This has been a known change since last summer! The 20 % QBI limitation is applied to modified Taxable Income which is what requires this programming change to bring the program into compliance. Apparently the software had not been revised since last year. Quote Link to comment Share on other sites More sharing options...
Marie Posted February 20, 2022 Author Report Share Posted February 20, 2022 apparently. made for extra work and extra explaining to clients Quote Link to comment Share on other sites More sharing options...
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