I recently left my former company and established an LLC to contract out Financial services.
After I had left, the former company had asked me to come back to train new individuals which was unrelated to my original work.
I received a 1099 from them for my work and had submitted it as QBI in TurboTax given that the work was unrelated to my work when I was still an employee at the company. After thinking it over, I'm not so sure I should have done that anymore?
What is your take on this? Would I qualify for the QBI or should I submit a revision? The generated income was roughly about $5,000
Because the work was different than your former job, it is eligible for the QBI deduction. The "former employer" rule is there to prevent people from quitting their W-2 job and doing the same work as a 1099 worker solely to deduct 20% of what is in substance the same employee wages. That is not the circumstance you describe.
Because the work was different than your former job, it is eligible for the QBI deduction. The "former employer" rule is there to prevent people from quitting their W-2 job and doing the same work as a 1099 worker solely to deduct 20% of what is in substance the same employee wages. That is not the circumstance you describe.