QBI is generated automatically when you have self-employment income. It is reported on line 13 of your tax return. It is determined from the net income from your business. In this case, the income is the amount of W2 wages you received. Since you are a statutory employee, you are considered as having a business.
QBI is calculated by taking your Gross income - expenses - 1/2 deduction for your Self-employment earnings-any retirement or Health insurance deducted by the business. Whatever remains is multiplied by .2 to get the amount of your QBI.
If you had a net loss in the business, you would not receive any QBI. Check box 13 of the 1040 to see if QBI is listed there. If not, go back and review your entries in Schedule C and supply any information that is required.
Make sure also to check the Box on your W2 indicating you are a statutory employee. Once you check the box and finish the W2, there will be some follow questions for you to complete. Once these are complete,
- Go to Federal > Income & Expenses>
- Self employment>self-employment
- You will see your profile started. Your income is already reported in the program as W2 income so you will need to finish out this section to claim your QBI.
- After expenses are entered and you have a net profit after entering your expenses, the amount of the net profit is multiplied by .2 to determine your QBI.
@stephk1
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