I am a health care therapist in private practice. Will I qualify for the line 9 Qualified business deduction of 20% of my business income of 261,799

Forum|Forum|7 years ago
June 3, 2019
1 reply
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Line 6 is 355,500 Line 7 is 334,033, Line 8 is 24,000, and line 6 sch 1 line 22 is 261,799

Do I qualify for the qualified business deduction even though I am a specified service trade as combined income after 24K deduction is 310,033?

TurboTax Home & Biz Windows

DawnC0

Level 12

Yes, but your deduction is limited. As a health care therapist, your business income is considered as coming from a Specified Service Trade or Business (SSTB). However, this does not preclude you from taking a QBI deduction. Because your joint taxable income is over $315K, your deduction will be reduced. Your deduction is disallowed at a joint taxable income level of $415K.

See the part about ''How it is calculated'' in the link below if you want more of a calculation explanation. But rest assured, TurboTax will calculate the deduction for you. Once you are over the threshold amounts, business wages paid and the unadjusted basis in business property get factored into the deduction and reduction amounts. All about the QBI