The program has reduced my qualified business income from Schedule C by the page 1 deduction for 50% of self employment tax. This does not seem to be required in the IRS instructions for the QBI 20% deduction.
Yes, it is done this way.
The 20% QBI deduction calculation compares the difference between 20% of the QBI (your Schedule C net income, minus any other deductions attributable to your Schedule C income, which encompasses deductions such as the solo 401K deduction, Self-Employed Health Insurance Deduction attributable to the business, and 1/2 of SE tax being deducted on your return) and 20% of your Adjusted Gross Income (AGI) (which encompasses other deductions and income amounts) Whichever amount is lower is the QBI deduction.
Final Regulations on Section 199A deduction (PDF)
Yes, it is done this way.
The 20% QBI deduction calculation compares the difference between 20% of the QBI (your Schedule C net income, minus any other deductions attributable to your Schedule C income, which encompasses deductions such as the solo 401K deduction, Self-Employed Health Insurance Deduction attributable to the business, and 1/2 of SE tax being deducted on your return) and 20% of your Adjusted Gross Income (AGI) (which encompasses other deductions and income amounts) Whichever amount is lower is the QBI deduction.
Final Regulations on Section 199A deduction (PDF)