Level 4

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QBI Deduction

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I am so confused. Is the W-2 wages the total wages for all the employees in the company or just the shareholder's W-2 wages? If all W-2 wages are 500,000 and out of the $500,000, $100,000 of the W-2 wages were for the sole shareholder in an S corp, which W-2 wages are they referring to? The total of $500,000 or just $100,000? Do you need to make any adjustments for the Shareholders wages of $100,000?

Lacerte Tax

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Level 15

ALL wages are used in the QBID computation.

HumanKind... Be Both

Level 15

ALL wages are used in the QBID computation.

HumanKind... Be Both

taxlady2008Author

Level 4

Thank you for your response. Do I need to deduct the shareholds wages from the S corp from the QBI?

Level 15

Lacerte handles all of this quite well.... ARE you using Lacerte?

HumanKind... Be Both

Level 15

Agree with Anna.

For fundamental questions about what constitutes W-2 wages, you may like to refer to TD-Reg-107892-18 and Rev. Proc. 2019-11.

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