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How much is the qualified business deduction for a single person. I have a single self employed person, and when I enter her income on Lacerte, the deduction is only 10%

cowboys15
Level 1
 
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IRonMaN
Level 15

There are some factors to consider other than just the bottom line of a schedule C.  Doesn't Lacerte provide a worksheet as to how the number is calculated?

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)

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IRonMaN
Level 15

There are some factors to consider other than just the bottom line of a schedule C.  Doesn't Lacerte provide a worksheet as to how the number is calculated?

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)

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cowboys15
Level 1
Yes, The worksheet shows Business income, minus 1/2 SE tax, then gives net total for QBI.  The amount shown is only 10% of the QBI.  I thought it was 20%
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IRonMaN
Level 15
What kind of income level are we talking?  Does she have other income?  Providing some numbers here might be helpful.
ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
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cowboys15
Level 1
No other income.  Just sch C income.
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IRonMaN
Level 15
I think you might have missed the part where I said providing some numbers might be helpful :smile::smile:
ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
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TaxGuyBill
Level 15
The 20% deduction is on the LOWER of (1) QBI and (2) "taxable income" (after adjusting for capital gains).
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rbynaker
Level 11
Is your QBID equal to your TI divided by 4?
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cowboys15
Level 1
Sch C income $38310, less 2707 1/2 SE tax, AGI $30755, less itemized $15634.  Here are the numbers.  
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IRonMaN
Level 15
See Bill's post about taxable income.
ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
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TaxGuyBill
Level 15
With "taxable income" of $15,121 (AGI  minus Itemized), that would result in a $3024 deduction.
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