OBBA tip deduction canceled out my QBI

I just found out two big ugly things about the Tip deduction, and its relationship to my QBI for my gig work with Instacart and Doordash.

First, the "tip deduction" can't exceed your "net profit, " and it reduces the amount of the QBI, which can effectively eliminate that deduction. For example, if you have a net business income of $2000 after business expenses and SE tax, and have tip income of $3000, you can only claim $2000 because that is your net business income, and you can't take the excess and apply it to your regular income to offset your AGI. this in turn, according to the IRS, takes your net down to 0 and effectively wipes out the QBI. In addition, you still pay the full SE tax on said income because that is calculated prior to the tip deduction, and you also pay the full SSI and medicare tax on the whole amount, including tips.

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