Is it true that for small businesses that the first 20,000 is not taxed?

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Is it true that for small businesses that the first 20,000 is not taxed?

No, that is not true. There is a new deduction this year called the Qualified Business Income Deduction. With the QBI deduction, most self-employed taxpayers and small business owners can exclude up to 20% of their qualified business income from federal income tax (but not self-employment tax) whether they itemize or not. It is complicated.

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