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xavie
New Member

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?

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?
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JulieCo
New Member

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?

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

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JulieCo
New Member

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?

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

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