4 ms·
My understanding though is that these restrictions only apply to high earners (>157.5k single, >315k married), and even then the restrictions phase in gradually
by NickM 9y ago
My understanding though is that these restrictions only apply to high earners (>157.5k single, >315k married), and even then the restrictions phase in gradually until you hit an even higher income. I would bet that most software developers have low enough incomes to qualify for some or all of the deduction, regardless of whether developers and IT professionals fall under the restricted categories. I could be wrong, so don't take my word for it, but I wouldn't give up hope just yet unless someone can elaborate on why this isn't the case.
- zrail 9y agoYep. Keep in mind that those numbers are taxable income not gross income. That means all deductions (including the standard deduction) except the 199A deduction itself apply before the 199A deduction. Even if you make a huge amount of gross income you can get below that threshold fairly easily by, for example, setting up a 401(k) and a defined benefit pension plan.