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Level 1

Although I have a schedule C business, I paid myself a W-2 salary. How do I determine the correct amount of the qualified business income deduction?

 
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Level 16

Although I have a schedule C business, I paid myself a W-2 salary. How do I determine the correct amount of the qualified business income deduction?

 a sole proprietor can not pay himself a salary so did you really file a W-2 and 941's. pay withholding, medicare and fica taxes?   if so, you have a mess on your hands.  your salary would not be deductible on schedule C nor reportable as wages on the 1040. Seek professional help to fix this.  There are many issues besides the QBI deduction. I advise not  filing your 1040 until this is cleaned up.     .


   Sole proprietors of businesses are not eligible to receive salaries, as it is prohibited by law. These small business owners thus do not receive W-2 forms. They can use the money in the business to pay personal expenses without adverse tax consequences. (not allowed to deduct personal expenses paid against business income.  

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Level 16

Although I have a schedule C business, I paid myself a W-2 salary. How do I determine the correct amount of the qualified business income deduction?

Please confirm that you have a Schedule C business, not a C Corp (which is different).
Level 16

Although I have a schedule C business, I paid myself a W-2 salary. How do I determine the correct amount of the qualified business income deduction?

 a sole proprietor can not pay himself a salary so did you really file a W-2 and 941's. pay withholding, medicare and fica taxes?   if so, you have a mess on your hands.  your salary would not be deductible on schedule C nor reportable as wages on the 1040. Seek professional help to fix this.  There are many issues besides the QBI deduction. I advise not  filing your 1040 until this is cleaned up.     .


   Sole proprietors of businesses are not eligible to receive salaries, as it is prohibited by law. These small business owners thus do not receive W-2 forms. They can use the money in the business to pay personal expenses without adverse tax consequences. (not allowed to deduct personal expenses paid against business income.  

Level 20

Although I have a schedule C business, I paid myself a W-2 salary. How do I determine the correct amount of the qualified business income deduction?

You are in an absolute nightmare now, unfortunately. The IRS considers a SCH C business, be it a sole proprietorship or single member LLC, to be a disregarded entity. Under no circumstances and with no exceptions does the owner of such a business issue themselves a tax reporting document of any type. There are no exceptions. You will need to seek professional help to fix this. If your state taxes personal income you've got another nightmare inside the first nightmare. Seek professional help yesterday, if not sooner.