Why would the figure on Qualified Business Income Form 8995, Line 1(c) not be equal to Schedule C, Line 31 (net profit or loss)?

[JulieS · Accepted solution]

The amount that is considered Qualified Business income is your net self-employment income minus one half of your self employment tax, the self-employed health insurance deduction and self-employed retirement deduction.

To check these figures on your return, start with line 31 of Schedule C. From that number subtract any entries on Schedule 1, lines 15, 16 and 17 that are associated with this business. 

That is the number that will appear on line 1c of Form 8995.