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On a K-1 with w-2 wages paid out of $150K and an income less than $315K threshold for QBI, is there the option of deducting the $150K in wages paid versus the QBI ded?

Forum|Forum|7 years ago
June 6, 2019
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Is is possible to choose between deducting W-2 wages paid to employees versus deducting the QBI deduction? My QBI deduction is not limited but I had $150K in W-2 wages which seems like it would be a larger deduction than the $40K of QBI. My income is reported on a K-1 as I'm a GP in a CPA firm.

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Best answer by DawnC0

No, you do not have a choice. If your total taxable income is less than $315,000 (married filing jointly taxpayers), the calculation is straightforward — 20% is applied to QBI or taxable income minus capital gains and dividends (whichever is less).

DawnC0Answer

Employee

No, you do not have a choice. If your total taxable income is less than $315,000 (married filing jointly taxpayers), the calculation is straightforward — 20% is applied to QBI or taxable income minus capital gains and dividends (whichever is less).

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beanet2Author

Is the $150K in wages that I paid to an employee deductible from my income? That doesn't seem to be reflected in my forms or I don't know where to put it if it is possible.