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Level 6
posted Mar 15, 2023 2:05:46 PM

Is single-member LLC always qualified to use QBI deduction?

which criteria should single member LLC meet to QBI deduction?

Turbotax's statement is very general:

 

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1 Best answer
Expert Alumni
Mar 15, 2023 2:45:53 PM

A single member LLC, will frequently, but not always qualify for the QBI Deduction.  Basically, if you meet the below criteria, you would likely qualify for the full QBI

  • Taxable income of less than $170,050 if single or $340,100 if Married Filing a Joint return
  • Income is not earned as an employee
  • Meet the definition and are not specifically excluded from the list of trades on page 2 of instructions for form 8995-A  (Most trades and services qualify)
  • Operated in the US

As you walk through the steps for the QBI questions, TurboTax will determine if you meet the criteria based on those general questions. 

 

1 Replies
Expert Alumni
Mar 15, 2023 2:45:53 PM

A single member LLC, will frequently, but not always qualify for the QBI Deduction.  Basically, if you meet the below criteria, you would likely qualify for the full QBI

  • Taxable income of less than $170,050 if single or $340,100 if Married Filing a Joint return
  • Income is not earned as an employee
  • Meet the definition and are not specifically excluded from the list of trades on page 2 of instructions for form 8995-A  (Most trades and services qualify)
  • Operated in the US

As you walk through the steps for the QBI questions, TurboTax will determine if you meet the criteria based on those general questions.