Qualified Business Income is a deduction that is currently allowed for all businesses that you actively participate in as long as the overall income on your tax return does not exceed $157,500 of you are filing as Single or $315,000 if your are filing as Married Filing Joint.
Since you are a hairstylist and you actively work your business you qualify for the deduction. If you have a loss for 2019 and claim the Qualified Business Income the 20% amount of the loss would then carry over to 2020. If you have income in 2020 then the 20% Qualified Business Deduction for 2020 would be reduced by the 20% Qualified Business Deduction loss for 2019.
For example 2019 you have a loss of $10,000 so your QBI is a negative $2,000 then in 2020 you have a $10,000 profit, your QBI deduction is a positive $2,000 the two amounts offset each other and equal zero. So for 2020 you would not have a QBI deduction on your tax return.
You cannot go back and forth on the election for QBI. If you pick to claim the deduction then you are required to claim each year whether you have income or a loss.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
