Carry Learning Center

Understanding how W-2 wages affect your Qualified Business Income (QBI) deduction can make a meaningful difference for business owners with higher taxable income. The IRS uses these wages to determine how much of the 20% deduction you may potentially claim, but the calculation process can be confusing at first glance. This guide simplifies the concept, explaining [...]

Running a small business or earning income through a partnership or S-Corp can come with unique tax advantages.  One of the most valuable is the Qualified Business Income (QBI) deduction, designed to reward business owners for their investment and risk. But understanding how this deduction works is not always straightforward, especially when it comes to the [...]

A 20% tax deduction can sound like a big win for business owners. But the upside could shrink fast if your taxable income crosses certain limits. The Qualified Business Income deduction, also called the QBI deduction, may lower taxable income for many pass-through business owners. The actual benefit, or lack of one, often depends on [...]

Two businesses can generate the same earnings and still end up with different tax outcomes. The difference often comes down to structure and how taxable income is defined. The Qualified Business Income (QBI) deduction could reduce taxable income for many pass-through owners. But the benefit is not uniform, and the result can shift based on [...]

For many self-employed individuals, the Qualified Business Income deduction can feel like one of the most confusing breaks in the tax code — yet it is also one of the most meaningful. This deduction, created under the Tax Cuts and Jobs Act, potentially allows certain business owners to reduce the taxable portion of their income. If [...]

If you earn income through a business, the Qualified Business Income deduction could still help reduce your taxable income through 2026. It was introduced under the Tax Cuts and Jobs Act and remains one of the most talked-about tax breaks for small business owners and self-employed professionals. The idea sounds simple — take a deduction for [...]

Looking for more freedom in how you invest your Solo 401k funds? Some account setups give you more control than others, especially if you are not tied to a prepackaged plan from a brokerage. A non-prototype brokerage account opens the door to broader investment choices and greater control. But it also shifts more responsibility to you [...]

Saving for retirement gets more complex as you move into your 50s and early 60s, especially if you are running your own business. The pressure to make the most of your remaining working years is real, but the rules are not always easy to follow. Important changes are coming soon that could affect how much you [...]

If you have a Solo 401k, staying compliant does not end after setup. Plan documents require periodic updates to reflect changing IRS rules. Missing these updates can lead to unexpected consequences. That is why Solo 401k restatements exist. In this article, you will learn what a Solo 401k restatement actually is, why it matters, and what to [...]

The One Big Beautiful Bill Act, signed into law by President Trump on July 4, 2025, introduces substantial changes to the U.S. tax code that will affect millions of Americans filing 2025 returns. The legislation includes new deductions for tips and overtime pay, increases the Child Tax Credit, and raises the state and local tax [...]

The Arizona Department of Revenue is urging residents to file their 2025 income tax returns on schedule despite the state lacking an approved tax code that conforms to recent federal changes, a situation that could force roughly one million taxpayers to amend their filings and cost the state $20 million to process. The unusual predicament stems [...]

The IRS began the 2026 tax filing season Monday with 27% fewer employees than it had a year ago, raising concerns about delays for millions of taxpayers who need assistance as the agency implements over 100 new tax law changes, according to National Taxpayer Advocate Erin Collins’s annual report to Congress. The workforce dropped from approximately [...]

The IRS opened its 2026 tax filing season Monday as the agency faces a potential government shutdown Friday and steep workforce reductions that threaten to disrupt refunds and taxpayer assistance for 164 million expected returns. Annual funding for the agency expires after midnight January 30, at which point employees would be furloughed or required to work [...]

Governor Kathy Hochul announced a proposal January 8 to eliminate New York State income taxes on up to $25,000 of tipped income starting in 2026, introducing Senate Bill S587-A that now sits before the Senate Committee on Budget and Revenue. The measure would deliver tax relief to hospitality workers, delivery drivers, and service employees across [...]

The Los Angeles City Council moved forward Tuesday with three tax increase proposals that could generate more than $260 million annually, targeting hotels, parking facilities, and unlicensed cannabis businesses. The measures are set for placement on the June 2026 primary ballot, marking the city’s latest push to shore up a general fund facing structural deficits. City [...]

The U.S. Court of Appeals for the Fifth Circuit ruled January 16 that limited partners in state-law limited partnerships qualify for a self-employment tax exemption based solely on their limited liability status, rejecting the IRS’s requirement that partners must be passive investors. The decision in Sirius Solutions LLLP v. Commissioner creates a direct split with [...]

New York City Mayor Zohran Mamdani is proposing a package of tax increases he says would raise about $9 billion a year to fund programs that include fare free buses and expanded childcare. The plan would require approval from state lawmakers in Albany. Mamdani has said the proposal would raise the state corporate tax rate from [...]

The Idaho House Revenue and Taxation Committee introduced legislation Friday that would align the state’s tax code with federal changes, resulting in an estimated $155 million annual reduction in state revenue. The bill proposes retroactive implementation to January 2025, setting up a debate over timing and fiscal impact as lawmakers weigh competing budget priorities. House Bill [...]