What's your understanding of the 20% Qualified Income" deduction

Feb 7, 2019

  1. junkman
    Offline

    junkman Guru

    Posts:
    809
    Likes Received:
    54
    State:
    Tennessee
    I'm getting ready for taxes and the question came up "did the business have qualified income in 2018". I'm doing a little reading, and don't understand the exact definition or why every sole proprietor wouldn't qualify. Has anyone here dealt with this?
     
    junkman, Feb 7, 2019
    #1
  2. adjusterjack
    Offline

    adjusterjack Guru

    Posts:
    999
    Likes Received:
    335
    State:
    Arizona
    See Chapter 12 (Page 49) of IRS Publication 535 for a comprehensive discussion of the deduction:

    https://www.irs.gov/pub/irs-pdf/p535.pdf

    The instructions for Form 1040 and Schedule C might also be helpful. You can obtain them from the IRS website.
     
Loading...