As if this tax season weren’t hectic enough, some accountants said they’ve run into software problems as they guide entrepreneurs through a new and complex 20 percent tax break. This year marks the first season in which households will be filing under the Tax Cuts and Jobs Act . This overhaul, which went into effect in 2018, doubled the standard deduction, eliminated personal exemptions and curbed itemized deductions. The new law also introduced a break for small business owners called the qualified business income deduction . This tax break allows owners of “pass-through” entities, including sole proprietorships, S-corporations and partnerships, to deduct up to 20 percent of their qualified business income. As tempting as it sounds, business owners and their accountants have been trying to figure out just who qualifies. Read more ……
