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 2018, Ginger's income from driving is $67,000 and she has no other income. Ginger's QBI deduction for 2018 is $13,400.

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Quizplus · Accepted Answer

The QBI deduction is 20% of qualified business income. For Ginger, it would be 20% of $67,000, which is $13,400. However, the deduction is limited to 20% of taxable income before the QBI deduction, which is $55,000 ($67,000 income - $12,000 standard deduction). Therefore, the QBI deduction is 20% of $55,000, which is $11,000.

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