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Is QBI Entity Selection Calculator not correct? Is there QBI income limit for LLC S-corp?

illuminato
Level 1

I used a calculator https://proconnect.intuit.com/tax-reform/entity-selection-calculator/ to see QBI deduction S-corp but it looks like it ignores income limits of $164,900 ($329,800 if married filing jointly), to claim the full 20% deduction.

For example, if my status is married filing jointly and "Business activity income before wages" is $300,000 where "Taxpayer W2 wages from business activity " is $100,000 then calculator gives "Less: QBI Deduction" as $-40,000. 

It looks okay because it is under income limits. But if I put  "Business activity income before wages" as $900,000 and " Taxpayer W2 wages from business activity" as 400,000 then it gives "Less: QBI Deduction" as $-100,000. It is very strange because I put the number well above the income limit ($329,800).

Also I can put any number into "Taxpayer other taxable income" e.g. $500,000 and still see "Less: QBI Deduction" as $-100,000 for example above. 

Is it just a calculator error, or does QBI Deduction not have income limits for LLC S-corp? 

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3 Comments 3
rbynaker
Level 13

Is this an SSTB?

illuminato
Level 1

Not SSTB

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rbynaker
Level 13

So then your limits are 20% of net income ($900K - $400K)*0.2 = $100K or 50% of wages $400K*0.5 = $200K.  $100K is lower so that's QBID.  Looks correct to me.