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April 19, 2022
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Online tutoring and QBI (qualified business income)

  • April 19, 2022
  • 1 reply
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Hello,

 

For the past couple of years, I have worked as an online tutor both for U.S.- and overseas-based companies (all my work has been done from the U.S.). I work as an independent contractor and do not receive any tax forms from these companies. My question is about the Qualified Business Income deduction. I don't really consider myself to have a tutoring "business," as these have been side jobs for me. However, do I still enter this income as Schedule C income, and does the income earned from these jobs count toward the QBI deduction? Also, does my work done for the foreign company also qualify, since the work was done in the U.S.?

 

Thank you for your help! 

    Best answer by ThomasM125

    Yes, your income is considered business income since you are providing services as a non-employee. As such, your income would be considered qualified business income (QBI). Your income would also be considered QBI even though you are providing services to sources in a foreign country.

    1 reply

    April 19, 2022

    Yes, your income is considered business income since you are providing services as a non-employee. As such, your income would be considered qualified business income (QBI). Your income would also be considered QBI even though you are providing services to sources in a foreign country.

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    April 22, 2022

    Thank you so much!