I am a marriage therapist and work as an independent contractor to an organization. I receive $30,000 of income on a 1099-NEC. Is this Qualified Business Income?

[DawnC · Accepted solution]

Yes; it is self-employment income, which qualifies as QBI.   This deduction applies to Schedule C filers (sole proprietorships and other self-employed businesses), LLCs, partnerships, S corporations, estates, and trusts.   Certain rental enterprises may also qualify.    Corporations are not eligible because they received their own tax breaks under the TCJA.

[Mike9241]

yes it is QBI since this was earned as part of your business as a therapist

the next issue which may or may not make a difference is this income from a specified service trade or business. the category that would seem to apply is consulting

here the definition of consulting from the iRS regs  1.199A-5(b)(2)

(vii) Meaning of services performed in the field of consulting. For purposes of section 199A(d)(2) and paragraph (b)(1)(vi) of this section only, the performance of services in the field of consulting means the provision of professional advice and counsel to clients to assist the client in achieving goals and solving problems. Consulting includes providing advice and counsel regarding advocacy with the intention of influencing decisions made by a government or governmental agency and all attempts to influence legislators and other government officials on behalf of a client by lobbyists and other similar professionals performing services in their capacity as such. The performance of services in the field of consulting does not include the performance of services other than advice and counsel, such as sales (or economically similar services) or the provision of training and educational courses. For purposes of the preceding sentence, the determination of whether a person's services are sales or economically similar services will be based on all the facts and circumstances of that person's business. Such facts and circumstances include, for example, the manner in which the taxpayer is compensated for the services provided. Performance of services in the field of consulting does not include the performance of consulting services embedded in, or ancillary to, the sale of goods or performance of services on behalf of a trade or business that is otherwise not an SSTB (such as typical services provided by a building contractor) if there is no separate payment for the consulting services. Services within the fields of architecture and engineering are not treated as consulting services.

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you would seem to meet the definition 

[jkpshopping]

Thank you for the quick and concise response. I have a follow up. On the days that I provide therapy, when I go into the office, are my meals at work a deductible expense? Meaning, I am just having a meal by myself at my workplace - I am not entertaining a client or anything like that.

Thank you.

[jkpshopping]

That's clear. Thank you very much.