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What is the 20% deduction for self-employed filers?

There is a 20% deduction on all qualified business income. The taxpayer’s qualified business income is the net amount of income and deductions for their trade or business.

Qualified business income includes income from:

  • Services
  • Rental real estate

Sole proprietorships and pass-through income from partnerships, S-corporations, estates and trusts qualify for this deduction. C corporations don’t qualify.