DavidS127
Expert Alumni

Get your taxes done using TurboTax

Yes, the calculation of Qualified Business Income (QBI) includes deducting half the self-employment tax (the amount you get to deduct as an adjustment in Part II of Schedule 1).  This comes into play for self-employment income, including self-employment income from a partnership.

 

The "half of self-employment tax" is a deduction, so it gets subtracted from the net income of the business.  The same is true for a self-employed health insurance deduction, or any deduction that gets passed to you by the business (i.e., the business didn't deduct to arrive at net income) that you deduct on your tax return.

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