An amount paid under a personal services contract could qualify for QBI depending on the terms. if an employee relationship is established, it should result in a W-2 being issued and in that case, it wouldn't qualify.
Search for the QBI Flow Chart in the Instructions for Form 8995 and follow the steps to help determine whether the income qualifies for the Qualified Business Income Deduction.
A qualified trade or business is any section 162 trade or business, with three exceptions:
- A trade or business conducted by a C corporation.
- The trade or business of performing services as an employee.
- For taxpayers with taxable income that exceeds the threshold amount, specified service trades or businesses (SSTBs).
Please see this help article, this IRS FAQ page, and this IRS webpage for more information.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
