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 taxable income exceeds the $207,500 threshold, she may not claim a QBI deduction for either business.

Question

Quizplus · Accepted Answer

Jane can still claim a Qualified Business Income (QBI) deduction for her stained glass business, as the QBI deduction is phased out for specified service trades or businesses (SSTBs) like her law practice, but not for non-SSTBs like her stained glass business, even if her taxable income exceeds the threshold.

Jane Is a Self-Employed Attorney and Single