Qualified business> It is in the US but it is also considered wages by the IRS. Do I answer yes or no?

[lhabner]

I just need to know whether to answer yes or no to the question. 

[JulieCo · Accepted solution]

For the two parts of the question, both have to be true to answer YES. 

BUT if only one or the other is true then you have to answer NO, as it means that either all of the business was operated outside the US or all of the business was from a former employer.   

If either one is a partial (that some of the work was outside of US or some of work was done for former employer) then the SOME answer would be selected. When the SOME answer is selected, additional boxes will drop down to be completed to determine what income needs to be excluded from Qualified Business Income. 

And note this for the definition of WAGES that are excluded from Qualified Business Income:

If a company that employed you as a W-2 employee in the last three years pays you for substantially the same services that you formerly performed as an employee, then the IRS will presume these payments should still be treated as wages ineligible for the QBI deduction. However, that's not the end of the story. If you have evidence that the working relationship to your former employer changed from that of an employee/employer relationship (such as service contracts or partnership agreements), then the IRS will not treat these payments as wages.