DanielV01
Expert Alumni

Get your taxes done using TurboTax

It is not QBI.  You will need to answer yes to that question, and the income will be treated as wages which are not eligible for QBI.  (Since she worked for the company as an employee, she may file Form 8919 to mitigate self-employment tax in this situation).  

TurboTax asks this question because the IRS put in a provision to prevent companies from using loopholes to include additional income that should be bonus wages (and therefore compensation not eligible for QBI) as income that could be included for the QBI deduction.  The loan origination company may have had this practice for years (not necessarily looking for this lopphole), but, regardless, the pay on the 1099-MISC cannot be used to claim QBI.

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