BLACK BART Posted February 20, 2019 Report Posted February 20, 2019 Simple question. Does the low-income ceiling (under $157K single/$315K MFJ) exempt those filers from deducting the (1) 1/2 SE deduction and (2) Self-Employed Health Insurance from QBI? One source said the wages/depreciation cuts did not apply to them, but didn't mention these two things. Quote
Lion EA Posted February 20, 2019 Report Posted February 20, 2019 No. the SE-related items come into play in calculating QBI at the beginning. Once taxpayers' AGI is in the phase-out range, then wages or wages/assets enter the calculation to re-calculate QBI. 1 Quote
BLACK BART Posted February 20, 2019 Author Report Posted February 20, 2019 Thanks. Do you know if also the IRA deduction applies to the low-income group? Quote
Lion EA Posted February 20, 2019 Report Posted February 20, 2019 There is some controversy about IRAs, but anything SE-related that already gets deducted above the line (1/2 SE tax, for instance) applies to all at all income levels. Look at other threads to see discussions re IRAs and QBI. Quote
BLACK BART Posted February 20, 2019 Author Report Posted February 20, 2019 25 minutes ago, Lion EA said: ...anything SE-related that already gets deducted above the line (1/2 SE tax, for instance) applies to all at all income levels... Yeah, I know the IRA/401/etc. is controversial, but your reply answers my question. Thanks again. P.S. I have a large-scale rentals client who may help solve the three-page debate raging below. He's so tight that if it costs him more than twenty bucks, he'll take it to the Supreme Court. 1 1 Quote
Lion EA Posted February 20, 2019 Report Posted February 20, 2019 Gotta love a volunteer guinea pig! Keep us posted. 1 Quote
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