"Maximize Your Tax Savings with QBI and PTET Strategies"

In this episode of How to Lower Your Tax Bill, host Terrence Hutchins, a financial and tax advisor in the Dallas-Fort Worth area, unpacks two critical tax-saving strategies for business owners: the Qualified Business Income (QBI) Deduction and the Pass-Through Entity Tax (PTET). Whether you’re a small business owner, freelancer, or entrepreneur, these strategies can make a significant difference in how much of your hard-earned income you get to keep.

Terrence breaks down:

• What qualifies for the 20% QBI deduction and how to determine if your business is considered a Specified Service Trade or Business (SSTB).
• Income thresholds that may phase out your eligibility for QBI, and the unique tests for high earners.
• How aggregating multiple businesses can maximize your tax benefits.
• The PTET election as a workaround for the $10,000 SALT deduction limit and how it can save business owners thousands.

Featured Tax Fact: Did you know England once taxed windows? Starting in 1696, homeowners paid taxes based on the number of windows in their homes, leading many to brick them up. This quirky tax lasted over 150 years before being repealed in 1851.

For more tips to keep more of what you earn, subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts.