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%

[IRonMaN · Accepted solution]

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?

[cowboys15]

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%

[IRonMaN]

What kind of income level are we talking?  Does she have other income?  Providing some numbers here might be helpful.

[cowboys15]

No other income.  Just sch C income.

[IRonMaN]

I think you might have missed the part where I said providing some numbers might be helpful :smile:

[TaxGuyBill]

The 20% deduction is on the LOWER of (1) QBI and (2) "taxable income" (after adjusting for capital gains).

[rbynaker]

Is your QBID equal to your TI divided by 4?

[cowboys15]

Sch C income $38310, less 2707 1/2 SE tax, AGI $30755, less itemized $15634.  Here are the numbers.  

[IRonMaN]

See Bill's post about taxable income.

[TaxGuyBill]

With "taxable income" of $15,121 (AGI  minus Itemized), that would result in a $3024 deduction.