As a sole proprietor I understand that I qualify for the QBI deduction. Is that in addition to the standard deduction?

[Ashby]

Yes, you get the standard deduction which is just tied to your filing status - $12,000 single/$24,000 married filing jointly.

The QBI deduction is a potential 20% deduction from taxable income based on the amount of business/self-employment income you have.

These are completely independent of each other and you can have both.

[bmramirez88]

Thank you! The reason I ask is because turbotax self employed did not calculate it that way or I am looking at it wrong. From my calculations for example are 100,000 QBI- 20% deduction puts it at 80,000 then the standard deduction for single is 12,000. Should taxable income in this case be 68,000 (barring any losses etc)

[Ashby]

There's an entire calculation worksheet, but it's more like Adjusted Gross Income minus Standard Deduction multiplied by 20% gets your QBI deduction.

[bmramirez88]

Okay, when I run the math it does not appear that the software is taking it into consideration. How can I double check that it is actually on my file?