New tax deduction for homeschool teachers and tutors in 2018!

Congratulations homeschool business owners which may include homeschool co-op teachers, directors and tutors! There is a new tax deduction that you are (probably) entitled to take on your 2018 tax return!

It’s called the Qualified Business Income (QBI) Deduction.

The QBI tax deduction is equal to 20% of your profit from a “qualified business.”

Tutoring and teaching are both a “qualified businesses” if operated as anything except a C corporation.

If your taxable income is less than $157,500 for a single person or $315,000 for married filing joint, you can claim the 20% QBI tax deduction (even if you are one of the not qualified businesses I listed). If your income is more than those thresholds, your deduction will be phased out.

There are some additional restrictions and complications, especially if your business is an S Corporation, pays wages to employees, or if you have several businesses. So consult your tax professional if those situations apply to you.

 The Qualified Business Income Deduction is found on Line 9 of the 2018 Form 1040. so look for it!

Your tax prep software may not calculate the deduction automatically; you may have to answer some questions to trigger the deduction.

This deduction is for business owners, but not for employees.

Need more help preparing your tax return for 2018 this year?

There is a lot to learn about running a business. I don’t mean to discourage you or anyone else away from operating a homeschool business. You provide a valuable service to homeschool families! I am offering this webinar to help you understand the tax implications:

Carol, thank you again for the webinar. It was one of the BEST webinars I’ve EVER attended. If you do hold another one, I would pay for it hands down.  Totally worth the $10! -Denise, webinar attendee

“I actually don’t care for webinars at all – it is not my learning style at all and I struggle to focus, but this one was extremely value and had my attention”. -Mary, webinar attendee

The webinar was recorded and you can access the recording and slide handout at for a small fee of $10.

Carol Topp, CPA
Helping homeschool leaders