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Level 1
June 2, 2019
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If I have W-2 wages and a separate 1099 for commission income. IS the 1099 QBI?

  • June 2, 2019
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    Best answer by DanielV01

    If it's from the same company, no.  If the commission is coming from your company, the IRS put in a policy in its final regulations on the Section 199A deduction that if you receive contractor income from the same source as your employee wages, that "contractor" income is actually the same nature as wages and does not qualify for QBI.  

    If the bonus comes from a different party, however, then the contractor income can qualify for QBI.

    1 reply

    DanielV01
    DanielV01Answer
    Level 15
    June 2, 2019

    If it's from the same company, no.  If the commission is coming from your company, the IRS put in a policy in its final regulations on the Section 199A deduction that if you receive contractor income from the same source as your employee wages, that "contractor" income is actually the same nature as wages and does not qualify for QBI.  

    If the bonus comes from a different party, however, then the contractor income can qualify for QBI.

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