199A and self employed- according to Congress

[ttbtaxes]

Correct, and that's the way BNA sees it as well. I have their Tax Planner software for 2018 and it has been updated several times already.

[Blaire]

In the calculation of the Qualified business income, do you need to subtract out the 1/2 SE tax? My software is calculating that way, but I am unable to find any support for the calculation. They are MFJ and under all thresholds.

[TaxGuyBill]

Yes.

From Publication 535 (which is based on the Final Regulations):

Determining your qualified business income.

Your QBI includes items of income, gain, deduction, and loss from any trades or businesses (or aggregated trade or business) that are effectively connected with the conduct of a trade or business within the United State. This includes income from partnerships (other than PTPs), S corporations, sole proprietorships, and certain trusts that are included or allowed in determining your taxable income for the year. It also includes other deductions attributable to the trade or business including, but not limited to, deductible tax on self-employment income, self-employed health insurance, and contributions to qualified retirement plans.

https://www.irs.gov/publications/p535#en_US_2017_publink10001328