Qualified Business Income

Forum|Forum|5 years ago
March 11, 2021
2 replies
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Would I qualify for the QBI deduction?

I'm not sure if the following would be "treated as wages " by the IRS and therefore excluded from the deduction. I did receive 1099-NEC's for all 3.

Umping

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TurboTax Home & Biz Windows

Best answer by MinhT1

Income reported on forms 1099-NEC is self-employed income, not wages.

Your net income from self-employment is Qualified Business Income (QBI) and makes you eligible for the QBI deduction.

MinhT1Answer

Income reported on forms 1099-NEC is self-employed income, not wages.

Your net income from self-employment is Qualified Business Income (QBI) and makes you eligible for the QBI deduction.

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SF2

I am reporting $3400 that I have received as self-employment income reported on 1099-NEC (for property management). However, TurboTax is not calculating any QBI deductions. Why isn't it eligible?

KrisD15

To clarify,

are you filing Schedule C?

Did you answer the questions relating to QBI after entering the Self-Employment income?

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Mike9241

you may be eligible. there is a class of income for QBI purposes referred to as a Specified Service Trade or Business. There are more restrictions on this type of income for it to qualify for QBI. and you have to idicate this in Turbotax for the computations of the QBI deduction are correct'

an SSTB as we presently understand is defined as any trade or business involving the performance of services in the fields of:

Health
Law
Accounting
actuarial science
performing arts
consulting
athletics
financial services
brokerage services
any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners
any trade or business that involves:
investing and investment management
trading
dealing in securities (as defined in section 475(c)(2)),
dealing in partnership interests, or commodities

also in computing the QBI deduction, regardless of whether or not the activity is an SSTB, QBI income must be reduced by 1/2 the self-employment tax, contributions to related retirement plans and any other expenses related to the activity.