Sweet Spot For S Corp. Shareholder Wages When Taxable Income Above Threshold
Sweet Spot For S Corp. Shareholder Wages of Non-Service Business When Taxable Income Above Threshold            
                 
S Corporation                
Corporation's Qualified Business Income              
Corporation's W-2 Wages Paid to Non-Shareholder Employees              
                 
20% of Qualified Business Income              
50% of W-2 Wages Paid to Non-Shareholder Employees              
                 
Total Wages Needed To Optimize 199A Deduction              
S Corp. Shareholder Wages Needed To Optimize 199A Deduction              
Adjusted QBI              
                 
20% of Adjusted QBI              
50% of Total Adjusted W-2 Wages              
                 
               
               
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
               
                 
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Note that the pass-through deduction is available for taxable years beginning after December 31, 2017 and under current law will not be available for taxable years beginning after December 31, 2025. This calculator should only be used if the taxpayer's taxable income is above the 199A threshold so that the 50% of W-2 Wages test would apply and you want to figure out an ideal amount of wages to pay the S corporation shareholder-employee in order to optimize the 199A deduction. If the taxpayer's taxable income is below the 199A threshold then the W-2 Wages test would not apply.

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