Question

what results in lower liability for an eligible tax preparer because it reduces the taxpayers total income from source such as wages, business income, dividend, capital gains, and other income/

Answer 1

You may deduct up to 20% of your QBI using the qualified business income (QBI) deduction.

What exactly does it mean to reduce your tax obligation?

Reducing the portion of your gross income that is taxed is the key to lowering your tax obligation. Increase your retirement contributions, if possible. One simple option to lower your taxable income for the year is to contribute pre-tax money to an employer-sponsored retirement plan like a 401(k).

What elements lower taxable income?

Contributing to a retirement account through an employer-sponsored plan or an individual retirement account is a practical strategy to lower taxable income (IRA). Both flexible and health spending accounts contribute to lowering taxable income in the year that contributions are made.

To know more about QBI visit :

https://brainly.com/question/29680333

#SPJ1