Is Self Employed A Qualified Business?

[Fat Dude]

Hi,

On Schedule C (form 104) it is asking "Is this activity a qualified trade or business under section 199a?"  Do I check the "yes" or "no" box? 

I worked self employed for 4 months as a contractor helping remotely at a medical clinic in Arizona.  I live in Arizona.

Thanks

[MayaD]

Per IRS: A qualified trade or business is any section 162 trade or business, with three exceptions:

1. A trade or business conducted by a C corporation.
    
2. The trade or business of performing services as an employee.
    
3. For taxpayers with taxable income that exceeds the threshold amount, specified service trades or businesses (SSTBs). An SSTB is a trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, investing and investment management, trading or dealing in certain assets, or any trade or business where the principal asset is the reputation or skill of one or more of its employees or owners. The principal asset of a trade or business is the reputation or skill of its employees or owners if the trade or business consists of the receipt of income from endorsing products or services, the use of an individual's image, likeness, voice, or other symbols associated with the individual's identity, or appearances at events or on radio, television, or other media formats.

The SSTB exception does not apply for taxpayers with taxable income at or below the threshold amount and is phased in for taxpayers with taxable income within the phase-in range. For taxpayers with taxable income above the phase-in range, no deduction is permitted with respect to any SSTB.

IRS.GOV

[Mike9241]

Healthcare professionals who provide services directly to their patients are SSTBs, including:

Doctors, surgeons, dentists, psychologists, etc.
Nurses and physician assistants
Physical, massage, and speech therapists
Pharmacists
Nutritionists
Veterinarians
Chiropractors
Acupuncturist

this list is not all-inclusive so it depends on what you were doing.