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My wife received a 1099-nec, from a consulting company she worked part-time does she qualify for QBI?

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March 5, 2022
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My wife received a 1099-nec, from a consulting company she worked part-time does she qualify for QBI? She worked fulltime for another company. She did not have any business expenses. Also do I answer the question the follow question" did you play a active role in the business" I did not play an active role in the company I received the 1099, but I was not sure if the question was directed at me as a self-employed consultatnt for the work.

Best answer by Hal_Al

Q. My wife received a 1099-nec, from a consulting company she worked part-time does she qualify for QBI?

A. Yes.

Since she received a 1099-NEC, instead of a W-2, she is considered self employed. She will be filing Schedule C, for that income, and paying Self Employment tax (social security and medicare) on that income. That, alone, usually qualifies for the QBI.

Q. Also do I answer the question the follow question" did you play a active role in the business" I did not play an active role in the company I received the 1099, but I was not sure if the question was directed at me as a self-employed consultatnt for the work.

A. Yes, the question is directed at you as a self-employed consultant.

The question regarding actively participating refers to the person who received the 1099-NEC.

She was an employee of the business and does not qualify for QBI.

If you were previously an employee of a business and continue to provide substantially the same services to that business after you are no longer treated as an employee, there is a presumption that you are providing services as an employee for purposes of section 199A for the 3-year period after ceasing to be an employee.

Employee and QBI

Hal_AlAnswer

Employee

Q. My wife received a 1099-nec, from a consulting company she worked part-time does she qualify for QBI?

A. Yes.

Since she received a 1099-NEC, instead of a W-2, she is considered self employed. She will be filing Schedule C, for that income, and paying Self Employment tax (social security and medicare) on that income. That, alone, usually qualifies for the QBI.

Q. Also do I answer the question the follow question" did you play a active role in the business" I did not play an active role in the company I received the 1099, but I was not sure if the question was directed at me as a self-employed consultatnt for the work.

A. Yes, the question is directed at you as a self-employed consultant.