Should self-employment tax be figured in to the qualified business income deduction calculation?

[liam-b-obrien]

Turbotax seems to be calculating my qualified business income deduction by taking my total annual profit (just revenue less expenses, no taxes), deducting 50% of my annual self-employment tax, and then multiplying by 20%.  Is inclusion of the self-employment tax correct here?

[MarilynG]

Yes, self-employment tax is excluded when calculating the QBI deduction.

Here's more detailed info:

https://ttlc.intuit.com/replies/7019998

[liam-b-obrien]

Thank you for the quick answer.  In that case, why is Turbotax just using 50% of the total, why not 100%?

[MarilynG]

You automatically get a a deduction for the other 50%... TurboTax calculates it for you; shows on Schedule 1, Line 27.