Updated June 17, 2026
Estimate your QBI deduction
Full Section 199A calculation with W-2 wage limits, SSTB phase-outs, and taxable-income cap. Educational estimate only. Consult a qualified CPA for your situation.
Section 199A lists the SSTB categories as: health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, and any trade or business where the principal asset is the reputation or skill of its employees or owners. Engineering and architecture are explicitly excluded. Above the income phase-out threshold, SSTB owners get no QBI deduction. Below the threshold, they qualify on the same terms as any other pass-through. SSTB classification is fact-specific and rules may change. This is educational information. Consult a CPA for your specific situation.
The statutory SSTB categories
Health: Physicians, dentists, nurses, physical therapists, and similar licensed health professionals who provide direct patient care. Medical billing companies, health insurance firms, and other health-adjacent businesses that do not provide direct care are generally not SSTBs.
Law: Attorneys and law firms providing legal services. Legal research companies or legal software providers that do not give client advice are generally not SSTBs.
Accounting: CPAs, enrolled agents, accountants, and tax professionals. Bookkeeping and payroll processing services that do not require licensed professional judgment are generally not SSTBs, though the line can be fact-specific.
Consulting: Businesses whose principal activity is providing advice and counsel. Treasury regulations define this category narrowly. A business that sells products or delivers services alongside advisory work is not automatically an SSTB just because it includes a consulting element. The facts matter.
Financial services and brokerage: Investment advisors, financial planners, and securities brokers. Banking and insurance generally fall outside this category.
Athletics: Professional athletes, coaches, and team owners operating as individuals or pass-through entities. Amateur coaches and fitness trainers are not automatically covered, though the facts determine classification.
The "reputation or skill" catch-all
Treasury Regulations interpret this catch-all narrowly. It targets businesses earning income based on an individual's fame or notoriety: endorsements, licensing of an image, appearance fees. It does not extend to professional service businesses generally. That narrow reading is intentional; a broad reading would have pulled in most of the professional economy, which was not what Congress wrote.
Mixed businesses
When a business has both SSTB and non-SSTB components, Treasury Regulations provide a de minimis threshold: if SSTB-type revenue falls below 10 percent of gross receipts, the whole business may be treated as non-SSTB. Above 10 percent, the SSTB portion may need to be separated and calculated independently. Aggregation rules can complicate this further. Classification of mixed businesses is one of the more contentious areas of Section 199A practice. Professional analysis is warranted.
Estimate your QBI deduction
Full Section 199A calculation with W-2 wage limits, SSTB phase-outs, and taxable-income cap. Educational estimate only. Consult a qualified CPA for your situation.