TurboTax is correctly calculating the QBI deduction for Schedule C in 2019 using the IRS rule described in Q6 of the IRS FAQ website at this link a portion of which is pasted here with emphasis added:
“A6. The ………. deduction is the lesser of:
- 20 percent of the taxpayer's QBI, plus 20 percent of the taxpayer's qualified REIT dividends and qualified PTP income; or,
- 20 percent of the taxpayer's taxable income minus net capital gain.”
The question about deducting half of your Schedule C self-employment tax is answered for Q21 at that same IRS FAQ websi..., a portion of which is pasted here with emphasis added:
“A21. ……….In addition to the profit or loss from Schedule C, QBI must be adjusted by any other items of gain or deduction related to the business, including but not limited to gains from Form 4797, the deductible part of self-employment tax, self-employed health insurance, self-employed SEP, SIMPLE, and qualified plan deductions.”
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