Reply To: QBI deduction calculations

Home Fairmark Forum Other Tax Topics QBI deduction calculations Reply To: QBI deduction calculations

#2150
kaneohe
Participant

sure is not obvious how to quote or delete………….

I believe the worksheet in the line 9 instructions for the 1040 lead you through the calculations: pg 37
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

be careful beginning w/ line 11 of wksht:
11. Income before qualified business income deduction .

The lines before this refer to QBI. However line 11 just has I (=income) and they mean following the 1040 from AGI, and then subtracting the std or itemized deduction to get the
I (income) to be used here for an alternate calculation. The lower of the marketed 20% deduction and this alternate calculation is the real QBI deduction and it appears often it is not what most expect.

  • This reply was modified 2 years, 8 months ago by Kaye Thomas.