Question

The QBI deduction is:

a. An itemized deduction.
b. A deduction from AGI.
c. A deduction for AGI.
d. A deduction claimed on Schedule C.

Answer 1

The QBI deduction is a deduction for AGI that reduces the taxable income of individuals who report business income.

Step-by-step explanation:

The QBI (Qualified Business Income) deduction is a deduction for AGI. It reduces the taxable income of individuals who report business income from a sole proprietorship, partnership, S corporation, or certain trusts or estates. This deduction allows eligible taxpayers to deduct up to 20% of their qualified business income from their taxable income.