The domestic production activities deduction cannot exceed 50 percent of the wages paid to employees engaged in domestic manufacturing activities during the year.

Question

Quizplus · Accepted Answer

This is a correct statement according to the IRS regulations. The deduction for qualified production activities is limited to 50% of the W-2 wages paid by the taxpayer during the year for domestic production activities.

The Domestic Production Activities Deduction Cannot Exceed 50 Percent of the Wages