Jane is a self-employed attorney and single. Her annual net earnings from her law practice always exceed $220,000.
Jane also has a business selling stained glass windows that she makes. Her earnings from this business are usually about $35,000 per year. Jane claims the standard deduction. Because Jane's 2019 taxable income exceeds the
$210,700 threshold, she may not claim a QBI deduction for either business.

Question

Quizplus · Accepted Answer

Jane may still be eligible for a Qualified Business Income (QBI) deduction for her stained glass window business, as the QBI deduction phase-out range for single filers in 2019 was between $160,700 and $210,700 for specified service trades or businesses (SSTBs), which her law practice may be considered. However, her non-SSTB business (stained glass windows) could still qualify for a QBI deduction since the income from this business is below the threshold for non-SSTB businesses, which had a higher phase-out range.

Jane Is a Self-Employed Attorney and Single