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

[junkman]

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?

 

[adjusterjack]

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.