QBI DEDUCTION

Forum|Forum|3 years ago
March 2, 2023
2 replies
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Not obvious that QBI deduction phaseout as income rises is working correctly.

Do not understand. Thought my deduction would be reduced.

Best answer by MinhT1

The calculation the QBI deduction is rather complex, but rest assured that TurboTax will handle your situation correctly.

To help you understand the basics of the deduction, you can read this TurboTax Help article. Please click on the links at the end of the article to learn more, especially the link titled How is the deduction calculated? (not for the faint of heart).

MinhT1Answer

The calculation the QBI deduction is rather complex, but rest assured that TurboTax will handle your situation correctly.

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lydlenAuthor

Thanks. Did not understand this before.

Therefore--Will have to fine amended returns for some past years.

ThomasM125

If your income is under $164,900 (single) or $329,800 (married-joint) the there will be no restriction on your QBI deduction because of your income. If your income is over those amounts, then there may still not be a restriction, but it depends on the W-2 wages and cost basis of depreciable assets the business owns. However, if you are a specified service trade or business (a business that relies mainly on the skills of the owner) then there are more restictions if your income is above the thresholds mentioned above, as the wage and depreciable property issues are not taken into account. The article mentioned by @MinhT1 will spell out the details.

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