Why cant we both qualify for the QBI? Wife and I both received a 1099-nec. I got it last year, but this is her first year to get the NEC. she gets the QBI, not me.

[Cynthiad66]

@sdarden - Sounds like you are saying that you are receiving the QBI deduction but not your wife..  Also sounds like she is entitled and you are not.  This can all be due to how you entered the Form 1099NEC.  You will need to ensure that it is entered as Spouse income if you have that option.  Also, if you are filing a joint return, the deduction is computed on the total income on the return and the deduction is applied to the income for the business.

The QBI deduction is calculated automatically by TurboTax on your return. Therefore, once you enter in your Schedule C, E, or F, 1099-DIV information and answer a few questions related to the business income, TurboTax will calculate the QBI deduction

The qualified business income deduction (QBI) is a tax deduction that allows eligible self-employed and small-business owners to deduct up to 20% of their qualified business income on their taxes. In general, total taxable income in 2021 must be under $164,900 for single filers or $329,800 for joint filers to qualify.

[sdarden]

I have received QBI in the past and am still self employed. This is the first year my wife received a NEC. This years she is getting the QBI and I am not. I checked the same blocks on the TT NEC forms, and rechecked, but only she is getting the deduction. Recommendation?

[AliciaP1]

It would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@sdarden

[sdarden]

sorry but i dont have a back panel on the left. Tools at the top though

[sdarden]

black panel, sorry

[AmyC]

You are on desktop, go to online >send tax file to agent > number pops.

Please reply with the 6 digit number here.

The QBI for each of you should be netted together. For more information, see QBI FAQ

[sdarden]

933473

[AmyC · Accepted solution]

The QBI looks good to me. Looking at the return, not able to see names, let me tell you what I can see.

• I see Schedule  C with start-up costs. That should tell you which person. Then the QBI deduction worksheet below it shows the tentative profit, the smaller of the 2 business returns. This number is then reduced by self employed health insurance and half of the self employment tax. These 2 deductions add up to the income so that the Sch C profit after self employment deductions is zero. This carries to the QBI section and remains at zero throughout the calculations.

• The other business has no health insurance, only the deduction for half of the self-employment tax and QBI is calculated on that  income minus half SE tax.

Since you are using the desktop version, you can click in the top right on the word FORMS. On the left side, scroll down to the 2 sch C forms and view them. If you have any other questions about this, please @AmyC since I have your file.

[sdarden]

thank you. I see where the elf employment tax and insurance was greater than my net profit. Thank you for walking me through it