ThomasM125
Expert Alumni

Get your taxes done using TurboTax

When you enter your K-1 schedule and complete the box 20 entries associated with code "Z" (For S corp box 17 & code V), you will be asked if your income is over the threshold for the phaseout of your QBI deduction ($326,600 married joint or $163,300 single/other.) If you indicate that your income is over the threshold amount, then you will see the option to indicate that you are a specified service trade business (SSTB.) You will see a similar question if you are entering rental or self-employment income.

 

If your income is under those amounts, then you don't need to indicate that you are an SSTB, since your QBI deduction will not be limited based on your status as an SSTB.

 

So, look for the question regarding your income in the section where you entered your business income.

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