The QBI Deduction | This Tax Break Can Save You a TON of Money as a Freelancer!
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If you’re a freelancer, gig worker, or small business owner, you should be writing off up to 20% of your taxable income. That’s thanks to a powerful tax break called the qualified business income (QBI) deduction.
The QBI deduction is a gamechanger for self-employed folks. But the IRS doesn’t make it easy to understand. (Typical….)
We’ve got you! This video explains what qualified business income is, who gets to write it off, and how to actually claim those tax savings.
We also go over the deduction limits that apply to high-income earners, and the special rules that apply to people in certain fields, including law, healthcare, and sports.
TIMESTAMPS
0:00 - Intro
0:40 - What is the QBI deduction?
1:50 - Who can take the QBI deduction?
3:02 - How to claim your QBI deduction
3:54 - Limits on the QBI deduction
4:38 - The QBI deduction cap for super high-income earners
5:09 - The QBI rules for specialized industries
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MORE ON THE QBI DEDUCTION (& OTHER TAX BREAKS)
The QBI Tax Deduction: What Is It and Who Can Claim It? www.keepertax.com/posts/qbi-d...
What Expenses Can I Deduct as a 1099 Contractor? www.keepertax.com/freelancer-...
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2022 QBI NUMBERS
Lower QBI limit (to get the full 20%):
$170,050 (single)
$340,100 (married)
Upper QBI threshold (for capping QBI deductions based on wages paid to your employees)
$220,050 (single)
$440,100 (married)
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OTHER VIDEOS TO WATCH
Standard Deduction vs Itemizing for Freelancers? • Standard Deduction vs ...
Behind on Your Taxes? • Behind on Your Taxes? ...
Tax Write-Offs Explained: • Tax Write-Offs Explain...
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COMMON TAX WRITE-OFFS
For designers: www.keepertax.com/tax-write-o...
For real estate agents: www.keepertax.com/tax-write-o...
For online sellers: www.keepertax.com/tax-write-o...
For consultants: www.keepertax.com/tax-write-o...
And more: www.keepertax.com/freelancer-...
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FREE TAX RESOURCES
1099 Tax Calculator: www.keepertax.com/1099-tax-ca...
How Much Should I Set Aside for Taxes? www.keepertax.com/self-employ...
Quarterly Tax Calculator: www.keepertax.com/quarterly-t...
Income Tax Calculator: www.keepertax.com/income-tax-...
Пікірлер: 22
You are delightful!! So clear, informational, and helpful. Thank you!
Love everything about your channel! You're doing a great job, thank you😀
You explained this complicated subject in simple terms so that my little brain could understand it and helped me complete my taxes and I thank you
@KeeperTax
Жыл бұрын
So glad the video helped! And your brain is definitely not little - taxes for self-employed people are just honestly ridiculous haha
Thank you, first comment, first like 👍
Great breakdown and video!
Bro you are awesome! Thank u
@KeeperTax
Жыл бұрын
Thanks, Erika!
Thanks
Hi, thanks for all the info. Question: Doesn't look like you cantake both QBID and EIC. (No dependents)
@KeeperTax
Жыл бұрын
Hi, Terie! It's possible to claim both the QBID and the EIC if you're eligible. However, it's true that the EIC is harder to qualify for and worth less if you don't have dependents.
Im confused so is consulting ,law,health performance arts i see im assuming for all Artist and freelancers etc the only Businesses that Qualify ?
@KeeperTax
Жыл бұрын
Hi! It's not limited to just those professions - all businesses qualify, as long as they aren't C corporations! The types of businesses you listed - specialized service trades or businesses - just have additional limitations on them. Specifically, they DON'T get the write-off if they earn more than a certain amount (currently $220,050 for single filers and $440,100 for married filers). So it's actually more advantageous NOT to be in one of those lines of work, as far as the QBI deduction goes.
@2solid4tv48
Жыл бұрын
@@KeeperTax thank you I subscribed
is it possible to speak with my keeper tax representative on the phone before filling my 2022 taxes?
@KeeperTax
Жыл бұрын
Hi, Zara! Unfortunately, you won't be able to chat on the phone, but you can actually communicate with your tax assistant right in the Keeper app. Just go to the "Tax Help" tab, and you can ask them any questions. If by chance you haven't downloaded the app yet, you can do that here: keeper.tax/e/TgCDnVGbkwb Feel free to also contact our customer support team at support@keepertax.com
@zaravelez
Жыл бұрын
@@KeeperTax thank you!
Do I get a QBI deduction if I sell insurance independently and make 160k a year
@KeeperTax
Жыл бұрын
Hi Landon! Yep, you'd qualify for the full 20% deduction. Here's an article (with an infographic!) where you can learn more: www.keepertax.com/posts/qbi-deduction
@l.austin2371
Жыл бұрын
@Keeper - Taxes made magical what about 1099 travel nurse?
@KeeperTax
Жыл бұрын
@@l.austin2371 Hi! Yes, sole proprietors are eligible.