topic Should self-employment tax be figured in to the qualified business income deduction calculation? in Business & farm

Should self-employment tax be figured in to the qualified business income deduction calculation?

liam-b-obrien — Mon, 03 Jun 2019 17:30:48 GMT

Turbotax seems to be calculating my qualified business income deduction by taking my total annual profit (just revenue less expenses, no taxes), deducting 50% of my annual self-employment tax, and then multiplying by 20%. Is inclusion of the self-employment tax correct here?

Yes, self-employment tax is excluded when calculating the...

MarilynG — Mon, 03 Jun 2019 17:30:49 GMT

Yes, self-employment tax is excluded when calculating the QBI deduction.

Here's more detailed info:

https://ttlc.intuit.com/replies/7019998

Thank you for the quick answer. In that case, why is Tur...

liam-b-obrien — Mon, 03 Jun 2019 17:30:50 GMT

Thank you for the quick answer. In that case, why is Turbotax just using 50% of the total, why not 100%?

You automatically get a a deduction for the other 50%......

MarilynG — Mon, 03 Jun 2019 17:30:51 GMT

You automatically get a a deduction for the other 50%... TurboTax calculates it for you; shows on Schedule 1, Line 27.