Carla is a self-employed online retailer and single. She has no employees. Her annual taxable income is usually around
$200,000. Carla could increase her QBI deduction if she incorporated her business, made an S election, and paid herself wages.

Question

Quizplus · Accepted Answer

Incorporating and making an S election allows Carla to pay herself wages, which can increase her Qualified Business Income (QBI) deduction by reducing the amount of income subject to self-employment tax and potentially optimizing the deduction calculation.

Carla Is a Self-Employed Online Retailer and Single