Paying sole owner of S corp on a 1099 vs a W-2 thereby qualifying for QBI deduction

Forum|Forum|6 years ago
December 7, 2019
2 replies
14 views

If a sole owner of an S Corps gets paid a salary on a W-2 then they do not receive the QBI deduction . However, if paid on a 1099 that carries over to the personal return on a Schedule C then they qualify for the QBI. Looking for clarification?

ProSeries Professional

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Best answer by Just-Lisa-Now-

No can do. They are an employee of the S-Corp, they get a W2.

Just-Lisa-Now-

Answer

Intuit Community Champion

No can do. They are an employee of the S-Corp, they get a W2.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

For this: "However, if paid on a 1099 that carries over to the personal return on a Schedule C then they qualify for the QBI. Looking for clarification?"

That would mean you Ignored that they work for their S Corp and you want to treat their Business Activity as a sole proprietorship activity, as if they are In business for themselves, doing that business as an independent contractor to their own S Corp.

Which isn't your reality and isn't how the regulations are applied.

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