It looks like I'll be able to deduct 20% of my taxable sole-proprietorship income with the new QBI deduction.
Do I apply that 20% before or after other deductions, including the standard deductions? I've read a bunch of the web pages out there, and this still isn't clear to me.
Currently my simple taxes look like this:
- Net business income
- Less deductible half of self-employment tax
- Less contribution to SEP-IRA
- Equals AGI
- Less standard deduction
- Equals taxable income
Where in this list do I get to insert the QBI deduction? This is relevant for the estimated taxes that I'll start paying in April.
Thank you!