Hello,

I filled out the entire form, but I wanted to confirm

QBI (Qualified business income deduction) on form 1040

I would like to know how to calculate this

Thanks.

Brian and Corrine Lee are married taxpayers filing jointly. They live in the home they own, located at 3301 Pacific Coast Hwy., Laguna Beach, CA 92651. Brian is an optometrist who owns his business; Corrine is a social worker for Orange County. They have two sons, Brady and Hank. During their trip to China last year, they fell in love with a beautiful 1-year-old girl from an orphanage near Shanghai and are in the process of adopting her. The social security numbers of the four current members of their household are 412-34-5670 for Brian, 412-34-5671 for Corrine, 412-34-5672 for Brady, and 412-34-5673 for Hank. Their birth dates are as follows: Brian, 5/20/1975; Corrine, 7/23/1975; Brady, 9/1/2005; and Hank, 9/11/2008. The following are Brian's income and expense information from his business and Corrine's W-2 from Orange County.

Lee's optometrist office income and expenses for the current year:

Gross income $265,000

Cost of goods sold 88,000 (beginning inventory $45,000; purchases $63,000; ending inventory $20,000)

Advertising 5,000

Wages 32,000

Office rent 9,600

Other 2,100

The Lees also made $40,000 in federal estimated tax payments during the year.

The Form W-2 Corrine received from Orange County contained this information:

Wages (box 1) = $76,925.04

Federal W/H (box 2) = $13,085.90

Social security wages (box 3) = $76,925.04

Social security W/H (box 4) = $4,769.35

Medicare wages (box 5) = $76,925.04

Medicare W/H (box 6) = $1,115.41

In addition, the Lees had the following income and expenses during the year:

Income

Interest from CDs at Pacific Coast Bank $5,000

Expenses

Mortgage interest paid to PC Bank for their home $29,500

Property taxes paid on their residence 7,000

Adoption expenses (fees, court costs, and attorney's fees) 8,850

Child care costs at LB Parks and Recreations after-school program for Hank 3,500

Brian and Corrine had qualifying health care coverage at all times during the tax year.

THANKS!