You'll need to sign in or create an account to connect with an expert.
The QBI deduction comes last. You do not need to factor in the QBI for your solo 401K deduction, but rather, the QBI deduction will factor in the 401K contribution in determining the amount of taxable income produced by your sole proprietorship for the purpose of the QBI deduction. Because of this, you can determine your 401K contribution like you may have done in the past on net income from the business (and taking into account the 1/2 of SE tax), but you do not need to factor in the QBI calculation for the sake of your 401K contribution.
I have provided a detailed answer on how the IRS is handling this, and it refers to the final regs just recently adopted by the IRS and Treasury Dept. It's detailed, but may help you to understand (There's also a link to a TurboTax FAQ that provides additional information as well). Please note: https://ttlc.intuit.com/replies/7161701
The QBI deduction comes last. You do not need to factor in the QBI for your solo 401K deduction, but rather, the QBI deduction will factor in the 401K contribution in determining the amount of taxable income produced by your sole proprietorship for the purpose of the QBI deduction. Because of this, you can determine your 401K contribution like you may have done in the past on net income from the business (and taking into account the 1/2 of SE tax), but you do not need to factor in the QBI calculation for the sake of your 401K contribution.
I have provided a detailed answer on how the IRS is handling this, and it refers to the final regs just recently adopted by the IRS and Treasury Dept. It's detailed, but may help you to understand (There's also a link to a TurboTax FAQ that provides additional information as well). Please note: https://ttlc.intuit.com/replies/7161701
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
4taxhelp
New Member
baileydog302
New Member
lydiagp7090
Returning Member
DLK59
Returning Member
CA_Tax_Payer
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.