My wife is a composer who makes money through global platforms like Spotify and the occasional in-person concert. We are Americans who lived overseas as expats at the start of the year, then moved to Texas in March. Her business is Schedule C. TurboTax asks if the income is qualified business income, and notes 'Income generated outside the United States' is excluded.
I assume all income from March onward counts because we were then living in the USA. But how do I handle income from January and February? Some of that income was made at a local concert, but most of it was worldwide streaming revenue. Similarly, some of our expenses were local, but many expenses were not (e.g. web hosting expenses).
Should I...
...adjust the QBI income to subtract all income and expenses that pertain to those months?
...adjust the QBI income to subtract only revenue earned overseas?
...just report all income as QBI?
