Section 199A deduction is not being applied because it shows I have zero taxable income

[MH2024]

When you look at Form 8995, the worksheet for calculating the Section 199A deduction, on line 10 it shows I have an eligible deduction of $1254. However, then you have to take the lesser of line 10 and line 11 (taxable income). Line 11 is showing zero, so it's negating my QBID. 

Looking at my 1040, I can see that the worksheet is getting that information from line 15 of my 1040, "Taxable Income."

But how is my taxable income zero, yet I still owe almost $1000? Shouldn't I be able to deduct the 20% for the QBID from whatever taxable amount I am paying tax on?

[Mike9241 · Accepted solution]

your posting from self-employed. that means if you have net self-employment income you will owe about 15% of SE tax - not income tax on it

$1,000 of  SE Tax translates into about $7,100 of SE income . the standard deduction would reduce your taxable income to $0 and your regular income tax to $0 also. but you would still owe the $1K in SE tax.

the SE is not affected by the QBI/199A deduction.