I'm having trouble understanding how the pass-through deduction works when you make only part of your income as an independent contractor.

Married filing jointly this year, we expect to earn (gross) about $105,000 on W-2 and $27,000 on 1099.

How much would we benefit (if at all) from the pass-through deduction?

  • Up to 20% of the 1099 income would not be taxable. Might come back for a thorough answer later: nolo.com/legal-encyclopedia/… – Hart CO Apr 27 '18 at 17:00
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    In other words, our Adjusted Gross Income would be lower by (27000 * 20% =) $5408. Correct? – user71795 Apr 27 '18 at 17:55

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