Solved: Are you required to subtract your SE tax deduction from your net earnings to calculate QBI for purposes of the new 20% deduction? It doesn't appear in IRS instructions.
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

Are you required to subtract your SE tax deduction from your net earnings to calculate QBI for purposes of the new 20% deduction? It doesn't appear in IRS instructions.

 
1 Best answer

Accepted Solutions
Level 9

Are you required to subtract your SE tax deduction from your net earnings to calculate QBI for purposes of the new 20% deduction? It doesn't appear in IRS instructions.

Yes.

The IRS released the Final Regulations a couple of days ago that clarified that (1) the 1/2 SE tax deduction, (2) Self Employed Health Insurance deduction, and (3) employer retirement contributions need to be subtracted from your business profit to determine "Qualified Business Income" (QBI) for the 20% deduction.

View solution in original post

2 Replies
Level 9

Are you required to subtract your SE tax deduction from your net earnings to calculate QBI for purposes of the new 20% deduction? It doesn't appear in IRS instructions.

Yes.

The IRS released the Final Regulations a couple of days ago that clarified that (1) the 1/2 SE tax deduction, (2) Self Employed Health Insurance deduction, and (3) employer retirement contributions need to be subtracted from your business profit to determine "Qualified Business Income" (QBI) for the 20% deduction.

View solution in original post

Level 1

Are you required to subtract your SE tax deduction from your net earnings to calculate QBI for purposes of the new 20% deduction? It doesn't appear in IRS instructions.

Thank you very much! Very helpful!
Dynamic Ads
v
Privacy Settings