Question

Which of the following are true about the Qualified Business Income Deduction (QBID)? (Select all that apply)

Choose one answer.

	a. The deduction is subject to various limitations.
	b. The deduction is claimed on Schedule A for itemized deductions.
	c. The business may be conducted in or outside of the US.
	d. Taxpayers are eligible whether they report a combined business profit or loss.

What is the maximum age a taxpayer with no qualifying children may be at the end of the year and still qualify for the earned income credit?

Choose one answer.

	a. Age 24
	b. Age 25
	c. Age 64
	d. Age 70?

Answer 1

1. Aggregation allows a business to combine its different business profit or loss for the Qualified Business Income Deduction. Hence, the statement which is true for Qualified Business Income Deduction (QBID) is:

d. Taxpayers are eligible whether they report a combined business profit or loss.

The deduction is not subject to various limitations.Taxpayers needs to further deduct their deduction with overall limitation. QBI must be income which is connected with business conducted in US. QBID can be combined with either standard deduction or itemized deduction.

Hence, for Qualified Business Income Deduction (QBID), out of the options given d is true.

Answer is

d. Taxpayers are eligible whether they report a combined business profit or loss.

2. Taxpayer may be eligible for earned income credit if he has no qualifying children. For being eligible, he must have earned income less than $15,570 for the year 2019. For being eligible for earned income tax credit, taxpayer must follow the EITC rules, must have a house in US for more than half of the tax period, must not be claimed as dependant or qualifying child in someone else's return and must be atleast 25 years of age and less than 65 years of age at the end of the year.

Hence, the maximum age a taxpayer with no qualifying children may be at the end of the year and still qualify for the earned income credit is Age 64.

Answer is c. Age 64