Who qualifies for the full 20% QBI deduction?

Single filers under $182,050 and MFJ under $364,100 (2024) with qualified business income from a pass-through entity get the full 20% deduction with no W-2 wage limitation.

What happens above the income threshold?

Above the threshold, the deduction phases out for specified service trades (SSTB) and is limited for others to the greater of 50% of W-2 wages or 25% of W-2 wages + 2.5% of qualified property.

Are rental properties eligible for QBI?

Rental income may qualify if it rises to the level of a trade or business. The IRS provides a safe harbor: 250+ hours of rental services per year, maintained with proper records.

QBI Deduction (Section 199A) Calculator

Calculate the 20% Qualified Business Income deduction for pass-through businesses, sole proprietors, and S-corps. Subject to income limits and W-2 wage/property limitations.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate the 20% Qualified Business Income deduction for pass-through businesses, sole proprietors, and S-corps. Subject to income limits and W-2 wage/property limitations. Use the qbi deduction result to inform your calculation.

Related Calculators

Self-Employment Tax

Finance & Accounting

S-Corp Salary vs Distribution

Finance & Accounting

Standard vs Itemized

Finance & Accounting

QBI Deduction (Section 199A) Calculator

How to Use

Related Calculators

Frequently Asked Questions

Who qualifies for the full 20% QBI deduction?

What happens above the income threshold?

Are rental properties eligible for QBI?