1099 nec QBI

[Bwarren99]

I received 1099 NEC under a business I worked for, they owned it not me. But taxes say I’m qualified for QBI but I’m not business owner? Is that correct? Will it audit me or get in trouble? I don’t want file cause I’m worried about it

[ZoltanB45]

If you received a 1099, you would not be an employee of their's, but rather self-employed. As you will see in IRS Link you may qualify for the QBI. There are income and industry limitations, but if Turbo Tax calculated the QBI based on your answers, then I would not be worried about being audited because of this. 

[SF2]

I am reporting $3400 that I have received as self-employment income reported on 1099-NEC (for property management). However, TurboTax is not calculating any QBI deductions. Why isn't it eligible?

[DawnC]

Did you link the 1099-NEC to a business Schedule C?   Also, did you enter expenses?  

With the QBI deduction, most self-employed taxpayers and small business owners can exclude up to 20% of their qualified business income from federal income tax (but not self-employment tax) whether they itemize or not.

The deduction amount depends on the taxpayer's total taxable income, which includes wages, interest, capital gains (etc.) in addition to income generated by the business.  Once the taxable income reaches or exceeds $170,050 ($340,100 if filing jointly), the type of business also comes into play.

At incomes below that level, the deduction is 20% of either taxable income (minus capital gains and dividends) or the QBI, whichever is less.   @SF2  

[SF2]

Oh, OK, Got it. Thank you! So, the deduction does not apply to self-employment tax! It only applies to federal income tax.