If you mean the Qualified Business Income deduction, there are a number of different income types that can generate the deduction.
For the purposes of the deduction, QBI is defined as net business income, excluding:
- Income generated outside the United States
- Investment income
- Form W-2 compensation paid to an S corporation owner
- Guaranteed payments to a partner
- Income from REITs, publicly traded partnerships, and qualified cooperatives (these entities may qualify for a 20% deduction under a different set of rules, the explanation of which is beyond the scope of this FAQ).
Please see the IRS’s Qualified Business Income Deduction page and TurboTax’s Help articles“What is the Qualified Business Income (QBI) deduction?” and "Do I qualify for the qualified business income deduction?" for more information.
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