How is the QBI deduction modeled?

Written by Cruise Team

Updated 3 years ago

Similar to the standard deduction, Cruise calculates the QBI deduction by following the steps described in Form 8995. The QBI deduction calculation:

Considers all 1099 income in calculation of adjusted gross income.
Incorporates the income phaseout for each filing status to adjust qualified business income.
Ignores REIT and PTP components.
Assumes all individuals are an SSTB (unless they meet the income threshold).

Did this answer your question?