Can I get QBI credit on payroll that I paid myself on Schedule C? Used a payroll service so I could get health insurance.

[cohenmandj]

Is there a place on the input sheet for calculating QBI to add the payroll back to the allowable income?

[abrown19 · Accepted solution]

QBI does not include items such as:

• Items that are not properly includable in taxable income
• Investment items such as capital gains or losses or dividends
• Interest income not properly allocable to a trade or business
• Wage income
• Income that is not effectively connected with the conduct of business within the United States
• Commodities transactions or foreign currency gains or losses
• Certain dividends and payments in lieu of dividends
• Income, loss, or deductions from notional principal contracts
• Annuities, unless received in connection with the trade or business
• Amounts received as reasonable compensation from an S corporation
• Amounts received as guaranteed payments from a partnership
• Payments received by a partner for services other than in a capacity as a partner
• Qualified REIT dividends
• PTP income

For more detailed information about QBI deductions, see here: https://www.irs.gov/newsroom/qualified-business-income-deduction