ARita, a single taxpayer, has net Schedule C income of $$150,000$ from a$$specified service trade or business $($SSTB$).$ She does not have any other business income. She also has Form W$-2$ income, and her taxable income for the year is $$221,000,$ before the QBI deduction. As Rita's tax preparer, what information will you share with her regarding her eligibility to claim the qualified business income deduction?

$$Unfortunately$,$ she is not entitled to the deduction on her tax return, since her taxable income is over the top threshold.

$$She qualifies for the deduction, but the amount will be limited based on her income.

$$She qualifies for the deduction, which will apply to $20\%$ of her taxable income.

$$She qualifies for the deduction, which will apply to $20\%$ of her net Schedule C income.