Several changes in tax law occurred in December, 2017 when the new bill was passed. For married, filing a joint return, when owning a business, the QBI Deduction can give you much needed relief from tax liability.

If a business owner is married, you must file a joint return to receive the most benefit from the Qualified Business Income Deduction. A single person would receive a deduction based on net profit of up to $157,500, married will receive a deduction based on net profit of up to $315,000.

One client this year had a spouse who refused to file a joint return. The QBI deduction went from $13,500 to $2,400 causing the taxpayer to owe $12,500.

 

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