Solved: Qualified Business Income
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44154415Kl
Level 1

Qualified Business Income

Would I qualify for the QBI deduction?

I'm not sure if the following would be "treated as wages " by the IRS and therefore excluded from the deduction.  I did receive 1099-NEC's for all 3.

 

Umping

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Thank you!

 

 

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Accepted Solutions
MinhT1
Employee Tax Expert

Qualified Business Income

Income reported on forms 1099-NEC is self-employed income, not wages.

 

Your net income from self-employment is Qualified Business Income (QBI) and makes you eligible for the QBI deduction.

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2 Replies
MinhT1
Employee Tax Expert

Qualified Business Income

Income reported on forms 1099-NEC is self-employed income, not wages.

 

Your net income from self-employment is Qualified Business Income (QBI) and makes you eligible for the QBI deduction.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Mike9241
Level 6

Qualified Business Income

you may be eligible.  there is a class of income for QBI purposes referred to as a Specified Service Trade or Business. There are more restrictions on this type of income for it to qualify for QBI. and you have to idicate this in Turbotax for the computations of the QBI deduction are correct'

an SSTB as we presently understand is defined as any trade or business involving the performance of services in the fields of:

Health
Law
Accounting
actuarial science
performing arts
consulting
athletics
financial services
brokerage services
any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners
any trade or business that involves:
investing and investment management
trading
dealing in securities (as defined in section 475(c)(2)),
dealing in partnership interests, or commodities

 

 

also in computing the QBI deduction, regardless of whether or not the activity is an SSTB, QBI income must be reduced by 1/2 the self-employment tax, contributions to related retirement plans and any other expenses related to the activity. 

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