topic Re: QBI Deduction in Self employed

QBI Deduction

jdawg31jdawg — Sun, 05 Apr 2020 23:57:28 GMT

I was a self-employed insurance salesman beginning in April 2019. I completed my Sch C in Turbo Tax, but did not receive a QBI deduction. I had a net profit, so I believe I should receive one as an independent contractor. What can I do to generate the deduction?

Re: QBI Deduction

JohnW222 — Mon, 06 Apr 2020 17:11:53 GMT

As an insurance salesman, you probably received a Form W-2.

If your W-2 has the "statutory employee" box on line 13 checked, make sure that that's reflected on the W-2 that you input into TurboTax.

Generally, wages aren't considered QBI, but if you're a statutory employee (indicated by the "statutory employee" box on line 13 of your W-2 being checked), then the income from the statutory W-2 is not considered wages for QBI purposes.

Re: QBI Deduction

jdawg31jdawg — Mon, 06 Apr 2020 17:26:12 GMT

I did not receive a W-2. I received a 1099 and therefore filed a Sch C showing my income and expenses.

Re: QBI Deduction

DeanM15 — Mon, 06 Apr 2020 17:46:34 GMT

To get the QBI Deduction, go back to the Self Employment Section. Click into the business you want to change. Once on the main page, scroll to the bottom, under Business Summary, click Edit next to Qualified Business Income. Walkthrough the questions.

Re: QBI Deduction

GaryTTax — Sat, 19 Mar 2022 04:22:26 GMT

TurboTax Home & Business 2021

My uploaded W2 indicates Statutory Employee, but Schedule C only shows expenses and loss without the income. Hence, QBI is calculated as $0. Is there a solution or do I need to go to H&R Block and chalk up the TTax cost as a loss?

Re: QBI Deduction

AliciaP1 — Sat, 19 Mar 2022 17:37:36 GMT

You need to link your W-2 to the Schedule C. You can walk through the step-by-step process for the W-2 and the questions after will identify the W-2 as the income for the Schedule C.

To do this please follow these steps:

Within your tax return, use the magnifying glass to search for w-2 and click the Jump to link in the results
Click Edit for the W-2 you need to link to the Schedule C
Click Continue through the screens until you get to the Tell us more about your role as a statutory employee screen
Identify the type of employee you are and click Continue
Click Yes for business expenses and Continue
Select the Schedule C you have to attach the income

@GaryTTax

Re: QBI Deduction

GaryTTax — Sat, 19 Mar 2022 17:49:43 GMT

Alicia,

Thank you. I had not gone far enough in the process.

Best,

Gary