Standard Deductions

The Tax Cuts and Jobs Act adds a deduction under IRC §199A for non-corporate businesses with "Qualified Business Income" (QBI) essentially equal to the lower of 20% of net business income or 20% of taxable income. For unmarried taxpayers, the amount before the phaseout begins is $157,500. For married taxpayers, the amount before the phaseout begins at $315,000. The 20% of QBI is limited to 20% of the sum of:

  1. Combined qualified trade or business income.
  2. Qualified REIT dividend income.
  3. Qualified publicly traded partnership income.
  4. Qualified cooperative dividends.

This deduction will almost certainly be taken after the amount of taxable income is figured.