Taxpayer is a Disney Travel consultant working through a travel agency and receives commissions only on a 1099-MISC. Would her Schedule C income qualify for the QBI 20%deduction or would she actually be considered an employee and not qualify for the deduction? She doesn't physically work at the agency and receives no W-2, just the commissions.
The fact that she receives a 1099-MISC means she is not a common law employee of the payer (assuming there is no misclassification of the status). You still need to evaluate whether her activities rise to the level of §162 trade or business and, therefore, whether to report the income on Sch C or Line 21. If it is a Sch C business, the income should be eligible for QBI so long as all the other conditions are met.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
