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Business & farm
You are correct in your understanding. The Qualified Business Income (QBI) deduction does indirectly affect the amount of Federal income tax that you may pay because it reduces your taxable income. You can see the amount of QBI deduction on Form 1040 line 13.
If the QBI deduction directly reduced your Schedule C business income, then the self-employment tax calculation would be reduced.
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March 19, 2023
5:52 AM