When I enter my info...something about qualified business deduction pops up. I am an independent contractor...I do not own the business so i have no clue why I am getting this. I mean I don't paid more deductions...but just wondering why I am getting this?
I am an independent contractor...I do not own the business so i have no clue why I am getting this. I mean I don't paid more deductions...but just wondering why I am getting this?
if you are an IC you are filing schedule C (I presume). if you are filing schedule C you have a business. if you have a business that is profitable, you may be entitled to take a deduction (the QBI deduction) equal to 20% of the schedule C net income, less the sum of: 1) 1/2 the self-employment tax, 2) your self-employed health insurance deduction and 3) any contribution to a retirement plan based on your schedule c. turbotax should be guiding you through the questions that have to be answered to generate this deduction. the other information required comes from the entries for schedule C.
form 8995 is generated for this deduction.
I do file a schedule C but i know for sure I do not own a business. I work for a business an an IC not as an employer but i am guessing since i am ic...i can use the deduction?
You are confusing owning a business with being an employer. The very name of Schedule C is Profit or Loss from Business. As an Independent Contractor you are considered to have your own business. Anyone who earns money and is not paid by W-2 as an employee is by default a "business owner". If you meet the qualifications, you are entitled to the QBI.