☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Apr 16, 2023 7:18:23 AM

QBI eligibility after 3 years

I am a software engineer - working for the same company since 1992.  In 2018 I was switched from a company employee to a contractor. I have received a 1099-NEC for the past 4 years.  The supplied help for QBI eligibility states that a contractor in my situation is not eligible for the QBI deduction for 3 years. Am I eligible for the QBI deduction now that I have been a contractor for more than 3 years?

0 1 479
1 Best answer
Level 7
Apr 16, 2023 12:11:46 PM

Yes, you are eligible for the QBI deduction. The Treasury Department and the IRS adopt this comment. "Section 1.199A-5(b)(2)(vii) of the final regulations provides that services within the fields of architecture and engineering are not treated as consulting services for purposes of section 199A."

1 Replies
Level 7
Apr 16, 2023 12:11:46 PM

Yes, you are eligible for the QBI deduction. The Treasury Department and the IRS adopt this comment. "Section 1.199A-5(b)(2)(vii) of the final regulations provides that services within the fields of architecture and engineering are not treated as consulting services for purposes of section 199A."