It depends on your 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.
For the purposes of the QBI deduction, an SSTB is defined as any trade or business that performs services in the fields of:
- Accounting
- Actuarial science
- Athletics
- Consulting
- Health
- Law
- Performing arts
- Financial services
- Brokerage services (including investment management and investing, trading, or dealing in securities, commodities, or partnership interests)
Engineering and architecture were specifically excluded from the SSTB definition as it relates to this new deduction.
Wondering if your line of work is considered an SSTB? Read more here.
