Solved

QBI Deduction

Forum|Forum|6 years ago
April 5, 2020
2 replies
0 views

I was a self-employed insurance salesman beginning in April 2019. I completed my Sch C in Turbo Tax, but did not receive a QBI deduction. I had a net profit, so I believe I should receive one as an independent contractor. What can I do to generate the deduction?

Best answer by AliciaP1

You need to link your W-2 to the Schedule C. You can walk through the step-by-step process for the W-2 and the questions after will identify the W-2 as the income for the Schedule C.

To do this please follow these steps:

Within your tax return, use the magnifying glass to search for w-2 and click the Jump to link in the results
Click Edit for the W-2 you need to link to the Schedule C
Click Continue through the screens until you get to the Tell us more about your role as a statutory employee screen
Identify the type of employee you are and click Continue
Click Yes for business expenses and Continue
Select the Schedule C you have to attach the income

@GaryTTax

J

JohnW152

As an insurance salesman, you probably received a Form W-2.

If your W-2 has the "statutory employee" box on line 13 checked, make sure that that's reflected on the W-2 that you input into TurboTax.

Generally, wages aren't considered QBI, but if you're a statutory employee (indicated by the "statutory employee" box on line 13 of your W-2 being checked), then the income from the statutory W-2 is not considered wages for QBI purposes.

J

jdawg31jdawgAuthor

I did not receive a W-2. I received a 1099 and therefore filed a Sch C showing my income and expenses.

D

DeanM15

To get the QBI Deduction, go back to the Self Employment Section. Click into the business you want to change. Once on the main page, scroll to the bottom, under Business Summary, click Edit next to Qualified Business Income. Walkthrough the questions.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

G

GaryTTax

TurboTax Home & Business 2021

My uploaded W2 indicates Statutory Employee, but Schedule C only shows expenses and loss without the income. Hence, QBI is calculated as $0. Is there a solution or do I need to go to H&R Block and chalk up the TTax cost as a loss?

AliciaP1Answer

You need to link your W-2 to the Schedule C. You can walk through the step-by-step process for the W-2 and the questions after will identify the W-2 as the income for the Schedule C.

To do this please follow these steps:

Within your tax return, use the magnifying glass to search for w-2 and click the Jump to link in the results
Click Edit for the W-2 you need to link to the Schedule C
Click Continue through the screens until you get to the Tell us more about your role as a statutory employee screen
Identify the type of employee you are and click Continue
Click Yes for business expenses and Continue
Select the Schedule C you have to attach the income