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 Instructions 1045 Form 2016

2016-2025 Form

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Instructions and help about Instructions 1045 Form

foreign [Music] we will be going over the remaining lines of form 1040. in the previous tax credits video we skipped line 13 which we will go over now line 13 is for the qualified business deduction and upon deducting it the taxpayer will arrive at their taxable income the tax cuts and jobs act tcja introduced in 2018 a qualified business income qbi deduction that permits pass-through businesses to be taxed on only 80 percent of their income this qbi deduction was necessary to keep pass-through business tax rates reasonably in line with corporate tax rates which were reduced to 21 under tcja core of the qualified pass-through business income deduction is that shareholders or owners will simply be permitted to deduct 20 of the business income against itself which will be claimed as a below the line after adjusted gross income deduction for tax purposes and entered here on line 13. line 14 is for adding 12 the taxpayers total itemized or standard deduction plus 13 which was the qualified

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