Take it away, Steve…The Section 199A tax deduction surely counts as the best small business and individual investor tax break of the 21st century.
And just what is “qualified business income?” Qualified business income equals your bottom-line business profit adjusted for any of the other deductions directly connected to the business, including self-employment taxes, self-employed health insurance, and employer retirement plan contributions.
Example 1: Assume your tax return shows a $108,000 bottom-line Schedule C profit, an $8,000 self-employment tax deduction and a $20,000 SEP-IRA deduction.
Gambit #1: Maximize Qualified Business IncomeYou want to maximize your qualified business income.
Gambit #4: Use Tax Savings Wisely, GrasshopperA final tip—and one that especially relates to folks aggressively saving money toward financial independence…Use the tax deduction and the savings it produces wisely.

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