this has to due with the qualified business income deduction. the IRS has a ruling that would treat the amount you were paid by a former employer as non-qualified QBI income because you answered yes to that question
read the ruling below and if you believe that you should treat this income as qualified QBI income go back an answer no.
WARNING
the IRS further states elsewhere in the ruling that there can be substantial penalties if you claim this income as qualified QBI and the IRS, upon audit, determines it's not.
(3) Presumption that former employees are still employees--(i) Presumption. Solely for purposes of section 199A(d)(1)(B) and paragraph (d)(1) of this section, an individual that was properly treated as an employee for Federal employment tax purposes by the person to which he or she provided services and who is subsequently treated as other than an employee by such person with regard to the provision of substantially the same services directly or indirectly to the person (or a related person), is presumed to be in the trade or business of performing services as an employee with regard to such services. This presumption may be rebutted upon a showing by the individual that, under Federal tax law, regulations, and principles (including common-law employee classification rules), the individual is performing services in a capacity other than as an employee. This presumption applies regardless of whether the individual provides services directly or indirectly through an entity or entities.
