Should TurboTax Business include wages from all employees or just the S-Corp Shareholder's wages when calculating the Section 199A W-2 Wage?

[john-r-moyer]

The calculated Section 199A Wages includes the wages for all of the employees and not just the S-Corp Shareholder's wages.  Is that correct?  If not, how do I correct it in TurboTax Business?  The wages of the Shareholder are well below the thresh hold, but the wages of all of the employees is over the thresh hold.

[SarahM · Accepted solution]

For the purposes of calculating Qualified Business Income under Section 199A, the W-2 wages include the W-2 wage expense paid by the business to all employees. See the below link for more details on the Section 199A QBI deduction. 

https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-i...