Question

I teach online for a foreign instituion and get paid in foreign currency. Can I take QBI deduction?

Forum|Forum|3 years ago
October 10, 2022
2 replies
0 views

Hello,

I am a US citizen and I teach online classes in my US home office for a foreign institution as my side job. I get paid in their currency and I also need to pay foreign taxes. In my case, can I take QBI deduction for this self employment business since it is foreign source income? I called turbotax and the expert told me that I should be able to take the QBI deduction while claiming foreign tax credit. But I cannot find a definite answer myself from internet. Can someone help?

Thanks!

TurboTax Self Employed Online

Critter-3

Ok ... paying foreign taxes or taking the foreign tax credit have nothing to do with the QBI deduction on the Sch C income. Look at the form 1040 line 13 and the QBI worksheets.

M

MK100Author

Thank you! I know I can take foreign tax credit and I have no doubt about it.

My quesiton is whether I can take QBI deduction since my income is foreign source. I have the impression that foreign source income is not generally qualified for QBI. However, the turbotax helpline expert told me that since I am a US citizen and I operate my business in my US home office (online-teaching), so I should still able to take QBI. Any advice?

J

junklent

Did you ever get an answer for this?

A

AbrahamT

According to this IRS ruling HERE the answer is no

From what you are telling me, the income that you are discussing relates to activity not effectively connected with the conduct of business within the US.

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