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Massage therapist, I received paymts & 1099-MISC from a client's insurance. Income is in Box 6 "Medical Payments". Is this Income treated differently? Lower my QBI?

The TT On Demand Tax Guidance states that this is income for providing health care services more than $600 to other businesses. Of course, the services were provided to massage clients whose insurance paid for part of their massage costs. My income is not too high to be disallowed the QBI. My TT computed QBI is less than my total profit. Does that seem correct? What could be decreasing it?
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KrisD15
Employee Tax Expert

Massage therapist, I received paymts & 1099-MISC from a client's insurance. Income is in Box 6 "Medical Payments". Is this Income treated differently? Lower my QBI?

The income should count regardless if the client used Box 6, although I would advise 1099-NEC be used rather than 1099-MISC. 

QBI is reduced for your Self-Employment Tax (FICA), retirement contributions and Self-Employed Health Insurance. 

 

HERE is more information about QBI

 

 

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1 Reply
KrisD15
Employee Tax Expert

Massage therapist, I received paymts & 1099-MISC from a client's insurance. Income is in Box 6 "Medical Payments". Is this Income treated differently? Lower my QBI?

The income should count regardless if the client used Box 6, although I would advise 1099-NEC be used rather than 1099-MISC. 

QBI is reduced for your Self-Employment Tax (FICA), retirement contributions and Self-Employed Health Insurance. 

 

HERE is more information about QBI

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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