What was new last tax season? A lot! Besides the biggest tax reform in over 30 years, have you seen the new Form 1040 which makes it look like you can file your tax returns on a “postcard?” Well…….not so fast! Attach are the printable new forms with instructions or visit the IRS site for more information.
Another big change under the 2017 Tax Reform and Jobs Act aka “TCJA” is the Qualified Business Income “QBI” deduction. It is the net amount of qualified items of income, gain, deduction and loss with respect to qualified trade or business from sole proprietors, pass-thru entities such as Partnerships (excluding publicly traded), S Corporations, LLC’s taxed as partnerships or S corps, and Trusts. The QBI calculation can be quite complex so be sure to check with your tax professional about it if the deduction applies to your tax situation.
- Section 199A Qualified Business Income Deduction Flowchart (pdf)
- QBI Deduction Scenario and Example – see attached (pdf)
- The QBI Deduction goes on Line 9, page 2, of the new Form 1040 (pdf)
“Where client relationship and personalized service do not end after tax season Ends” -Balanced Accountability CPA