I don't fully understand that 20% QBI myself. At least, not in depth. But my very rough interpretation is that up to a maximum of 20% of the SCH C taxable income is tax exempt. Exactly what percentages seems to depend on weather the business has employees or not, what they're paid and the such, and a few other things. I myself am self-employed with no employees, and got some kind of a QBI deduction that was less than 20%. When I started the research on it in chapter 12 of IRS Pubication 535, it was late, I was tired and basically I just quit my research. I also know that if certain qualifications are not met, then one doesn't qualify for any QBI. But like I said, I was tired at the time and gave up on the research. Maybe next year I'll dive back into it.
