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July 14, 2020
Question

Should I qualify for QBI deduction? I am a consultant (electrical engineer) and help Utility Industry in resolving problems and testing software.

  • July 14, 2020
  • 1 reply
  • 0 views
can I talk to somebody at Intuit?

1 reply

DavidS127
July 14, 2020

Your self-employment income as a consultant is eligible for the QBI deduction, but as a "consultant" you may be classified as a "specified services trade or business" (SSTB).  The QBI deduction for SSTBs starts to be limited when your taxable income reaches $160,700 for Single status, or more than $321,400 for Married Filing Joint, and at $210,700 for Single and $421,400 the QBI deduction is completely eliminated for SSTBs.

 

"Specified services" are professional services in the fields of health; law; accounting; actuarial sciences; performing arts; consulting; athletics; financial services; brokerage services; investing and investment management; trading; dealing in securities, partnership interests, or commodities; or endorsements, brand licensing, or media appearances.

 

If you aren’t sure if your self-employed business is an SSTB, click the “Specified Services” link on the that screen to get more information.

 

If you follow the questions in TurboTax carefully, it will walk you through the steps for QBI, and provide several "Learn more" links with additional details.

 

Note that some of the QBI questions for self-employed businesses don't "come up" in TurboTax Online until you've finished the Deductions and Credits section and "Continued" through the interview.

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