Ask HN: Trump Tax Plan Effect on Sole Proprietors / 1099

2 points by larrykubin ↗ HN
Under the new tax plan, I was reading that there will be a 20% deduction on net income for "pass through entities". As freelancers/contractors who are paid for app development services, does that mean we get a big tax break? For instance, does a Sole Proprietor (pass through entity) who uses their SSN and is a 1099 contractor that nets 100K/year now only need to pay taxes on 80K?

Source: https://mic.com/articles/186972/the-gop-tax-bill-could-create-a-nation-of-freelancers

1 comment

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Best to ask a CPA as there could be other instances that affect what you will need to do on your 2018 tax returns (e.g. you take a salary or not from the business and other things that may occur (you end up going over $157,000/year or you are married)).