Is is possible to choose between deducting W-2 wages paid to employees versus deducting the QBI deduction? My QBI deduction is not limited but I had $150K in W-2 wages which seems like it would be a larger deduction than the $40K of QBI. My income is reported on a K-1 as I'm a GP in a CPA firm.
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No, you do not have a choice. If your total taxable income is less than $315,000 (married filing jointly taxpayers), the calculation is straightforward — 20% is applied to QBI or taxable income minus capital gains and dividends (whichever is less).
No, you do not have a choice. If your total taxable income is less than $315,000 (married filing jointly taxpayers), the calculation is straightforward — 20% is applied to QBI or taxable income minus capital gains and dividends (whichever is less).
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