Looking for information on how the BBB will affect me

[tbduvall]

My husband and I  are under 60 and we file married jointly.  My husband is self-employed and reports his income under his social security number on Schedule C of IRS 1040.  His income is significantly less this year than last year.  I did not have any income the last time we filed, but I am now the beneficiary a small annuity/ira from my father's trust.  From what I understand the money is invested in the market, earning interest, and may be subject to capital gains tax.  No minor children.  I am trying to determine how the BBB might affect my taxes this year so that I can plan appropriately.

[Jennifer_A]

Thanks for joining the event!

In regards to your husband's income, net income from self-employment will be subject to self-employment tax.  This did not change.  However, the Qualified Business Income deduction is now permanent.  Generally speaking, your husband can deduct up to 20% of  the business net income on the Form 1040.

Regarding the IRA,  when you inherit an IRA from someone other than your spouse

• You can't make contributions or roll over any amounts
• You inherit the basis from any nondeductible contributions made by your father
• If you made a trustee-to-trustee transfer, the accounts remains in the name of your father, and you are listed as the beneficiary, then you will not owe tax until you start taking distributions from the account.
• Earning accumulations do not count as taxable income.  Only distributions would be considered income

For more information regarding inheriting an IRA, you can take a look at Publication 590-B