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Tag Archive for High Income Tax Strategies

How High-Income Professionals Can Benefit From The Pass-through Deduction

Charles Woodson - Pass-through Deductions

If you are a high-income professional who is excluded from the new pass-through deduction because you are in a specified service trade or business (SSTB), you may be able to use retirement plan contributions as a work-around so that you can benefit from that new 20% deduction.

An SSTB generally includes the following trades or businesses:

  • Health (services by physicians, nurses, dentists, veterinarians, and other similar health care providers, although this does not apply to spas and health clubs)
  • Law
  • Accounting
  • Actuarial science
  • Performing arts (but this does not apply to the services of others in the industry, such as promoters and broadcasters);
  • Consulting
  • Athletics
  • Financial services

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