Question 3 of 35. Self-employed adjustments to income and the qualified business income deduction will reduce: Income tax liability Payroll tax liability SE tax Schedule C net profit Mark for follow up after calculating the tentative profit Question 4 of 35. On Schedule C (Form 1040), a sole proprietor can potentially deduct One-half of self-employment tax Office-in-home expenses Qualified business income deduction Self-employed health insurance deduction Mark for follow up