Randall Posted August 11, 2022 Report Share Posted August 11, 2022 Client has S corp pass thru income. It qualifies for the QBI deduction. Client has separate 1099-NEC income with SE tax due. ATX us saying the 199 activity does not have the 1/2 SE tax deduction in the QBI calculation. If they are two separate activities, do I still have to reduce the QBI by the 1/2 SE tax deduciton? Quote Link to comment Share on other sites More sharing options...
Lee B Posted August 11, 2022 Report Share Posted August 11, 2022 Not reducing QBI by the 1/2 SE Tax would be a classic case of "double dipping." Quote Link to comment Share on other sites More sharing options...
Randall Posted August 11, 2022 Author Report Share Posted August 11, 2022 1 hour ago, cbslee said: Not reducing QBI by the 1/2 SE Tax would be a classic case of "double dipping." Not sure about this. If there is no QBI for that income, why would it be double dipping? I can see it if the QBI deduction were including that activity's income. Quote Link to comment Share on other sites More sharing options...
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