Is is possible to choose between deducting W-2 wages paid to employees versus deducting the QBI deduction? My QBI deduction is not limited but I had $150K in W-2 wages which seems like it would be a larger deduction than the $40K of QBI. My income is reported on a K-1 as I'm a GP in a CPA firm.
No, you do not have a choice. If your total taxable income is less than $315,000 (married filing jointly taxpayers), the calculation is straightforward — 20% is applied to QBI or taxable income minus capital gains and dividends (whichever is less).
Is the $150K in wages that I paid to an employee deductible from my income? That doesn't seem to be reflected in my forms or I don't know where to put it if it is possible.
Employee wages should already be deducted from the income reported on the K-1. The K-1 shows your share of the partnership's income or loss that is yours because you are a partner. You may or may not have received some of this as a cash distribution, but it is still income to you.