Ginger is a self-employed driver finding rides via a few different platform companies such as Lyft. She is single and claims the $12,000 standard deduction. For 2019, her income from driving is $67,000 and she has no other income. Ginger's QBI deduction for 2019 is $13,400.

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Ginger's QBI deduction would be 20% of her qualified business income (QBI), which is $67,000. Therefore, 20% of $67,000 is $13,400. However, since she is taking the standard deduction and has no other income, her taxable income would be reduced by the standard deduction ($12,000 for 2019), making her taxable income $55,000 before the QBI deduction. The QBI deduction cannot exceed 20% of her taxable income after the standard deduction, which would be $11,000 (20% of $55,000), not $13,400.

Ginger Is a Self-Employed Driver Finding Rides Via a Few