Question

Am I qualified for QBI if I don't own a business?

Forum|Forum|4 years ago
April 16, 2022
1 reply
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I am confused about whether I qualify for the Qualified Business Income Deduction. I am a full-time graduate student, and during 2021, I completed a part-time internship. I received a small stipend for the internship, which was reported on form 1099-NEC. I don't own any kind of small business - I am just an individual who received this stipend as a one-time payment for my internship.

TurboTax says I should receive the QBI, but is this correct? The IRS site says "owners of sole proprietorships, partnerships, S corporations and some trusts and estates" may be eligible for the QBI, but I don't think I am any of those things? I do not own any kind of legal business entity.

Thank you for your help!

TurboTax Self Employed Online

F

FangxiaL

If you report the 1099-NEC as self-employment income, you should be able to take the QBI deduction. If you report it as other income, then there is no QBI deduction.

You should not be subject to self-employment tax for the stipend.

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