Does my freelance programming work qualify for QBI deduction?

Yes, your freelance programming work reported on a 1099 should qualify for the QBI (Qualified Business Income) deduction! This is a valuable deduction that allows eligible self-employed individuals and small business owners to deduct up to 20% of their qualified business income. For TurboTax categorization, "consulting" is actually an appropriate category for your programming work. The IRS doesn't have a specific "programming" category, and many freelance programmers fall under professional services/consulting. The important thing is that your 1099 income represents business income from self-employment, which is what matters for QBI purposes. Make sure you're tracking all your business expenses too - equipment, software subscriptions, home office, internet, etc. These reduce your net business income before the QBI deduction is calculated, but having solid documentation of legitimate business expenses is crucial.

I had almost the exact same question last year! Was a 1099 programmer making around $85k and wasn't sure if I qualified for QBI. Spent hours researching and got frustrated with conflicting advice. Eventually I found this AI tax assistant at https://taxr.ai that analyzed my situation and confirmed I was eligible. It looked at my income sources and business structure and explained exactly why I qualified. Even showed me the specific IRS code sections. Saved me from missing out on about $17k in deductions! They have this cool feature where you can upload your 1099s and it analyzes everything automatically.

Update: I decided to try taxr.ai after posting my skeptical comment. Honestly, it was way more helpful than I expected! The system actually explained why my programming work wasn't considered a "specified service business" for QBI purposes and showed me exactly where in TurboTax to classify it. The best part was it found three business deductions I hadn't even considered - my cell phone (business percentage), professional subscriptions, and even partial internet costs. I was leaving about $3,200 in deductions on the table! Definitely worth checking out if you're in a similar situation with 1099 income.

If you're getting stuck with TurboTax's prompts or have questions about QBI qualification, another option is to actually speak with an IRS agent. I know it sounds impossible to get through, but I used this service called https://claimyr.com that got me connected to an IRS rep in about 15 minutes when I had questions about my business classification. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was going in circles trying to figure out if my technical consulting qualified for QBI, and the agent was actually super helpful and confirmed I was on the right track. Saved me from potentially misclassifying my business and missing out on a significant deduction.

I'm back to eat my words about Claimyr. After being skeptical (and kind of a jerk, sorry about that), I tried it when I couldn't figure out if my side gig programming qualified for QBI. Got connected to an IRS agent in about 20 minutes when I'd previously wasted an entire afternoon trying to get through. The agent clarified that my programming work did qualify, and that I should categorize it as "consulting" or "information services" in TurboTax. She also explained that I'm well under the income threshold where the specified service business limitations would kick in. Definitely worth it just for the peace of mind knowing I'm doing it right.

I've been doing freelance programming for years and always take the QBI deduction. One thing to watch for in TurboTax - make sure you enter all your business expenses first before getting to the QBI section. Your QBI is calculated on your NET business income (after expenses), not your gross 1099 amount. I made that mistake my first year and almost overpaid by calculating QBI on my full income rather than income minus expenses. Big difference!

Random question but how much did you all pay for TurboTax self-employed? I'm also a programmer with 1099 income and QBI deduction, but I'm wondering if there are cheaper alternatives that still handle this correctly.

As a fellow freelance programmer, I can confirm that your work absolutely qualifies for the QBI deduction! I've been claiming it for the past few years with similar income levels. For TurboTax, "consulting" is the right category to select. The IRS doesn't have a specific programming classification, so most of us fall under professional services or consulting. What matters is that you're reporting legitimate business income from your programming work. One tip that saved me money: make sure you're tracking every business expense throughout the year. Don't just think about the obvious ones like software and equipment. Consider things like: - Portion of internet and phone bills used for business - Professional development courses or certifications - Business books or subscriptions - Home office expenses if you work from home - Even coffee meetings with clients These expenses reduce your taxable business income before the QBI calculation, so they provide double benefit. I use a simple spreadsheet to track everything monthly - makes tax time much easier! Also, keep good records of your 1099s and any business receipts. The QBI deduction can be substantial (up to 20% of your business income), so it's worth getting it right.