The first thing to know is that your QBI deduction is most likely accurate. There are many ways to qualify for the deduction and some are not obvious.
Most common reason: You did a small amount of work that qualifies as “self-employed” work, but you don’t think of yourself as self-employed or owning a business.
- Did you do some work where you were paid directly by a customer or business, with no taxes withheld from your compensation? You may or may not have also received a 1099-NEC in the mail to document this payment(s). Either way, this is considered self-employment income, which means you’re eligible for the QBI deduction.
Were you involved in a partnership?
A Partnership is where two or more persons join to perform a trade or business. Involvement in such a relationship makes you eligible for the QBI deduction. (More info from the IRS on Partnerships)
For more info on the above and other situations that confer eligibility to receive the QBI deduction, see this info from the IRS: