BonesOfTheMoon@lemmy.worldM to InsanePeopleFacebook@lemmy.world · 8 months agoSovcit is thinking out loud.lemmy.worldimagemessage-square64fedilinkarrow-up1212arrow-down13
arrow-up1209arrow-down1imageSovcit is thinking out loud.lemmy.worldBonesOfTheMoon@lemmy.worldM to InsanePeopleFacebook@lemmy.world · 8 months agomessage-square64fedilink
minus-squareEvacuateSoul@lemmy.worldlinkfedilinkarrow-up3·edit-28 months ago2017 tax law changed this One of the law’s changes allowed owners of pass-through businesses—partnerships, sole proprietorships, and S corporations—to deduct 20 percent of their qualified business income (QBI) when calculating their taxes. Edit: Better source https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs ~~https://www.americanprogress.org/article/the-2017-tax-bills-pass-through-deduction-largely-favors-the-wealthy-and-encourages-gaming-of-the-tax-code/~~
minus-squareblarth@thelemmy.clublinkfedilinkarrow-up3·8 months agoThat 20% is not in addition to the standard deduction. It only comes into play if your total deductions exceed the standard deduction.
2017 tax law changed this
One of the law’s changes allowed owners of pass-through businesses—partnerships, sole proprietorships, and S corporations—to deduct 20 percent of their qualified business income (QBI) when calculating their taxes.
Edit: Better source https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs
~~https://www.americanprogress.org/article/the-2017-tax-bills-pass-through-deduction-largely-favors-the-wealthy-and-encourages-gaming-of-the-tax-code/~~
That 20% is not in addition to the standard deduction. It only comes into play if your total deductions exceed the standard deduction.
Correct.