What is the QBI deduction?

Section 199A allows a 20% deduction on qualified business income from pass-through entities (sole proprietors, partnerships, S-corps, REITs). Reduces taxable income but not AGI.

What is a Specified Service Trade or Business?

SSTBs (law, health, accounting, consulting, finance, etc.) phase out of the QBI deduction above $191,950 (single) or $383,900 (MFJ) in 2024, fully phased out $100,000 above the threshold.

How do W-2 wage limitations work?

For high-income non-SSTBs, QBI deduction is limited to the greater of: 50% of W-2 wages, or 25% of W-2 wages plus 2.5% of qualified property unadjusted basis.

Does QBI deduction apply to rental income?

Rental income can qualify if it rises to the level of a trade or business. A safe harbor exists: 250 hours of rental services per year for the rental to qualify.

Is the QBI deduction permanent?

Section 199A is scheduled to expire after 2025 unless Congress extends it. Tax planning before 2026 is important for business owners who benefit significantly.

US Qualified Business Income Deduction (QBI Section 199A) Calculator

Calculate the 20% QBI deduction for pass-through businesses. Phase-out for SSTBs above $191,950 (single)/$383,900 (MFJ) in 2024. W-2 wages and qualified property limitations.

Use the full interactive calculator below, or

Related Calculators

Schedule C Profit/Loss

Finance & Accounting

K-1 Pass-Through Income

Finance & Accounting

US AMT Calculator

Finance & Accounting

US Qualified Business Income Deduction (QBI Section 199A) Calculator

Related Calculators

Frequently Asked Questions

What is the QBI deduction?

What is a Specified Service Trade or Business?

How do W-2 wage limitations work?

Does QBI deduction apply to rental income?

Is the QBI deduction permanent?