Are you eligible for a Qualified Business Income (QBI) deduction?
If you expect to earn business income of less than $170,050 single or $340,100 married filing jointly, you may qualify. Your type of business and source of income received are important factors.
The qualified business income deduction (QBI) allows eligible self-employed and small-business owners to deduct up to 20% of their qualified business income (QBI), plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income.
If you qualify for the QBI deduction, you can take it whether you itemize or take the standard deduction. There are limitations, and the below chart may help answer the basic questions. Talk with your CPA and financial planner to help figure out the best tax strategy.
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