Oregon Qualified Business Income (QBI) Deduction for two Schedule C businesses

[Mrerytr]

My husband and I both have separate Schedule C businesses.  I made approximately 100,000 last year and he made 50,000.  

When I put in just my info, we get a refund of 1490.

When I put in just his info, we get a refund of 1367.

When I put in both our incomes we get a refund of 411.  

But shouldn't it be more with both our incomes?  I do not see that we are crossing an income threshold.  

[Mrerytr]

I think I may have answered my own question (although I still don't understand the math).  It looks like as the owner of a sole proprietorship I am not considered an employee of my own business.

[AmyC]

When you enter each business separately, the income tax is computed and also the SE tax. There is a tax bracket difference between just his income and your or his and joint.

Self-Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. 

By the time you enter both businesses and compute SE tax plus federal tax vs what you have paid in, you see the results. There have to be some other credits coming into play here as well. Gross income vs net income can be a big difference. You may have EIC, retirement, or other, coming into play 

As an owner, you are not an employee. Without seeing your return, I can't be of any more help. I wish I was sitting there with you!

[Mrerytr]

I know enough to know I can't take the deduction - that extra thousand was appealing! 

The form is not auto populated at all.  You fill it all in yourself.