Michael Torres
CPA, Former IRS Revenue Agent
Section 199A Deduction (QBI)
In This Article
Definition
Tax deduction allowing self-employed individuals to deduct up to 20% of qualified business income, reducing taxable income on pass-through income.
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FAQs
Can gig workers take the QBI deduction?
Yes, most gig workers qualify for the 20% QBI deduction on their net business income.
Similar Terms
1099 Form
IRS tax form reporting income paid to non-employees, commonly 1099-NEC for contractor pay or 1099-K for payment platforms.
1099-K
Tax form reporting payments from payment networks like PayPal or gig platforms when exceeding annual thresholds.
1099-NEC
Tax form for non-employee compensation of $600 or more, replacing Box 7 of the old 1099-MISC for contractor payments.
Self-Employment Tax
Social Security and Medicare taxes for self-employed individuals, totaling 15.3% on net earnings.
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Important Disclaimer: This content is for informational purposes only and should not be considered tax, legal, or financial advice. Consult a qualified professional (CPA, tax attorney, or financial advisor) for advice specific to your situation.