Sole Proprietor

Forum|Forum|5 years ago
March 8, 2021
2 replies
7 views

I have a client who is a Home Health Aide, last year she got paid in cash (all put in as cash payments w/o 1099's) but for 3 months of the year she worked and got a W-2 from a private client, is she still a qualified business if she has cash (to pay taxes on) and a W-2?

thanks

be well

riki

[email address removed]

SweetieJean

Alumni - Champ

Client? TT is not licensed for use by paid tax preparers.

Opus 17

Level 15

"Qualified" in what sense? Certainly she would have a schedule C business for most of her income but will also enter the W-2 for that client. (The W-2 client is not added to the schedule C.)

This revenue procedure appears to say that wages that are not allocable to the qualified business are not
"wages" subject to the QBI limitation.

https://www.irs.gov/pub/irs-drop/n-18-64.pdf

That seems to mean that, since this person has a qualified business and a W-2 job that are completely separate, the W-2 job does not limit the QBI, even though they are in the same general line of work.

However, I am not an attorney or accountant.