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

[joe7230]

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?

[Just-Lisa-Now- · Accepted solution]

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

[qbteachmt]

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.