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posted Jun 1, 2019 9:36:32 AM

Can a self employed psychologist take Qualified Business deduction?

My wife is self employed in a psychology practice.  She files Schedule C.  No W-2 income.  I took the Qualified Business deduction but now I read elsewhwere that Psychologists are excluded in the February 2018 regulations.  Is that correct?  Do I need to amend? If so, how do i return the refund that we received?

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1 Best answer
Level 1
Jun 1, 2019 9:36:34 AM

Yes, a self-employed psychologist can take the QBI depending on the income.

The specified service trade or business (SSTB) classification doesn’t come into play as long as total taxable income is under $157,500 ($315,000 if filing jointly). At higher income levels, the deduction for SSTBs is reduced and in some cases, eliminated.

Psychologists are covered by the above classification, but the QBI is available until they reach the above income thresholds.

For more information, follow this link: https://ttlc.intuit.com/questions/4499030-what-is-the-qualified-business-income-qbi-deduction

1 Replies
Level 1
Jun 1, 2019 9:36:34 AM

Yes, a self-employed psychologist can take the QBI depending on the income.

The specified service trade or business (SSTB) classification doesn’t come into play as long as total taxable income is under $157,500 ($315,000 if filing jointly). At higher income levels, the deduction for SSTBs is reduced and in some cases, eliminated.

Psychologists are covered by the above classification, but the QBI is available until they reach the above income thresholds.

For more information, follow this link: https://ttlc.intuit.com/questions/4499030-what-is-the-qualified-business-income-qbi-deduction