What is the 20% deduction for self-employed filers?

[CarolineM]

There is a 20% deduction on all qualified business income. The taxpayer’s qualified business income is the net amount of income and deductions for their trade or business.

Qualified business income includes income from:

• Services
• Rental real estate

Sole proprietorships and pass-through income from partnerships, S-corporations, estates and trusts qualify for this deduction. C corporations don’t qualify.

[Carl]

Basically, ( and I do mean *basically*) it allows you to exclude "up to" 20% of your net *taxable* business income from being taxed. Not all businesses will qualify for it either.