FAQ for QBI states SSTB class not used if income <$157k. Can't find info elsewhere--please cite. I'm a speech therapist making < than $157. I can take deduction correct?

[xavie]

In your FAQ for Qualified Business Income deduction you state that "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)." I can't find this info anywhere else--can you point directly at the lines in the tax code that say this. I'm a speech therapist in the health industry making less than $157k. That means I can take the deduction, correct?

[JulieCo · Accepted solution]

Yes, if the taxable income on your 1040 return is under the thresholds of $157,000 singe and $315,000 joint, then there is no exception for the SSTB qualified business income.  

Here is a quote from the 2018 IRS 1040 Instructions (p 34):

Exceptions: If your taxable income before the qualified business income deduction is less than or equal to $157,500 ($315,000 if married filing jointly), your specified service trade or business is treated as a qualified trade or business. If your taxable income before the qualified business interest deduction is more than $157,500 but not $207,500 ($315,000 and $415,000 if married filing jointly), an applicable percentage of your specified service trade or business is treated as a qualified trade or business. For more information, see Pub. 535.

See screenshot of the page below.  Plus here is the link to the document:  https://www.irs.gov/pub/irs-pdf/i1040gi.pdf