Why can't I claim the QBI deduction as a high-income consultant?
Consulting is treated as a specified service trade or business (SSTB) under the QBI rules, alongside fields like law, accounting, health, and financial services. For SSTBs, the deduction phases out completely once your taxable income rises above the upper threshold the IRS sets each year, and it's reduced in the phase-in range just below it. Below the lower threshold, though, SSTB owners get the full 20% just like anyone else. So the deduction isn't gone for all consultants, only for higher earners. Strategies to stay eligible include increasing retirement contributions to lower taxable income, income timing, or, in some cases, restructuring. Because the thresholds and the deduction's future are set by law that may change, confirm current figures at irs.gov before planning around it.