Qualified business income deduction | Internal Revenue Service
Qualified business income deduction | Internal Revenue Servi…
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The QBI deduction can reduce your taxable income, but here's the catch: if you're paying yourself a reasonable salary (as required), that salary isn't eligible for the QBI deduction. While this lowers your QBI benefit, it also reduces the self-employment tax you have to pay. As your taxable income increases, the benefits of electing S corp tax treatment become more obvious, especially when you're hitting higher net income levels like $100,000 or $200,000. #Taxes UCAMA240827_SF03 | Uplevel Entrep
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