Where is the § 199A deduction taken on Form 1040?
A) It is a deduction from AGI, much like the standard deduction or itemized deductions, and is the last deduction taken in determining taxable income.
B) It is a business deduction and is taken on Schedule C (Form 1040).
C) It is a deduction that reduces self-employment income and is taken on Schedule SE (Form 1040).
D) It is an itemized deduction taken on Schedule A (Form 1040).
E) None of these.

Question

Quizplus · Accepted Answer

The § 199A deduction, also known as the Qualified Business Income Deduction, is taken from adjusted gross income (AGI) but is not an itemized deduction or a business expense on Schedule C. It is a separate calculation that reduces taxable income directly on the Form 1040 after the AGI is determined and after the standard or itemized deductions are applied.

Where Is the § 199A Deduction Taken on Form 1040