I started working for a nonprofit at the end of 2024. I'm trying to figure out if my earnings are considered wages or if they are Qualified Business Income. I do not receive a W-2 at this job and my earnings were too low in 2024 to be eligible for a 1099.
My understanding is as follows: if you're paid by the hour or you were paid by the hour by that same organization over the last three years, then it is not qualified business income. If you are not hourly, then you should have a qualified business income.
an individual can rebut the IRS presumption that you are an employee by providing records, such as contracts or partnership agreements, that provide sufficient evidence to corroborate the individual's status as a non-employee.
It's not getting paid hourly that's an issue. it's that all your labors are performed for a single entity. Whether you are an independent contractor or an employee who should have gotten a W-2 is the issue.
see this IRS webpage
https://www.irs.gov/newsroom/worker-classification-101-employee-or-independent-contractor