Per IRS Instructions for Form 1040, page 6:
Qualified business income deduction. Beginning in 2018, you may be able to deduct up to 20% of your qualified business income from your qualified trade or business, plus 20% of your qualified REIT dividends and qualified PTP income. The deduction can be taken in addition to your standard deduction or itemized deductions.
For more information, see the instructions for line 9 and Pub. 535.
To complete the Qualified business income (QBI) section for self-employed or sole proprietor income in TaxAct:
- From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click in the upper left-hand corner, then Federal.
- Click Business Income under Federal Quick Q&A Topics to expand that category, then click Qualified Business Income (QBI) deduction (scroll down if necessary).
- Click Add to create a new copy of Schedule C or Review to modify an existing form.
- Continue through the interview questions until you reach the screen titled Qualified business income deduction information.
- The program will proceed with the interview questions for you to enter or review the appropriate information