Where does one report the wages of a statutory employee (Box 1 of W-2 form) who is eligible for a 199-A deduction?

[vluebbe]

How can I report all of the income earned for 199-A purposes?  Taxpayer as a statutory employee receives a W-2 but also has Schedule C income form his insurance sales.  The QBI worksheet at the end of Schedule C uses only the net income form Schedule C and none of the W-2 statutory income. 

[itonewbie · Accepted solution]

Nothing surprising in that because QBI is not based on gross income and has to be adjusted for deductions that are attributable to that qualified ToB.

[itonewbie]

Did you link the input for the statutory employee W-2 to the correct Sch C?

[itonewbie]

Also, if your client also received 1099-MISC income, that probably belongs to another ToB and should be reported on a different Sch C along with the related expenses, which may require allocation.