Qualified Business Income in OHIO - 1099 NEC

Forum|Forum|3 years ago
April 18, 2023
2 replies
4 views

I cannot find my original post so I am trying agin today:

In Ohio, the first $250,000 of Qualified Business Income is 100% deductible. I am having a hard time trying to decipher if our 1099-NEC is "qualified" and Ohio Taxation could not even really tell me with confidence. Husband's income is commission based. I am a part time contracted remote insurance nurse. Both sources of income are 1099 NEC. It makes a huge difference if I can get this right - goes from owing over $5k to being refunded around $500. Any clear help is much appreciated!

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TaxRayM

Level 2

The 1099 NEC is considered to be business income in Ohio. Enter the 1099 NEC on the federal income and link it to your schedule C You would fill out the schedule C with related expenses. This would qualify for the Ohio business deduction

AnnetteB6

Level 15

In general, most Schedule C businesses generate Qualified Business Income. That is not always the case, there are some exceptions that kick in after a certain level of income.

Take a look at the following TurboTax help articles for more information that may help:

Do I qualify for the qualified business income deduction?

What is the Qualified Business Income (QBI) deduction?

Also, taking a look at the following resource from the Ohio Department of Taxation, any sole proprietorship qualifies for the Ohio business deduction. The Federal definition of QBI is not a factor.

Ohio Business Income Deduction

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