Carla, a single taxpayer, has taxable income of $250,000. Included in her taxable income is income from her consulting business that is operated as a S Corporation. Mary, a single taxpayer, has taxable income of $120,000. Included in her taxable income is income from her consulting business that is operated as a S Corporation. Which of the taxpayers can use the Qualified Business Income (QBI) deduction?
I.Carla can take the QBI deduction
II.Mary can take the QBI deduction.

Question

Carla, a single taxpayer, has taxable income of $250,000. Included in her taxable income is income from her consulting business that is operated as a S Corporation. Mary, a single taxpayer, has taxable income of $120,000. Included in her taxable income is income from her consulting business that is operated as a S Corporation. Which of the taxpayers can use the Qualified Business Income (QBI) deduction?
I.Carla can take the QBI deduction
II.Mary can take the QBI deduction.
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Quizplus · Accepted Answer

Mary can take the QBI deduction because her taxable income is below the threshold for single filers, allowing her to potentially qualify for the deduction. Carla's income exceeds the threshold, which may limit or disqualify her from the deduction depending on other factors.

Carla, a Single Taxpayer, Has Taxable Income of $250,000