Section 199A QBI Calculator

Section 199A QBI Deduction Guide

The Section 199A Qualified Business Income (QBI) deduction allows pass-through business owners to deduct up to 20% of net profit.

IRS Deduction Framework

Standard QBI Deduction = Min(QBI * 0.20, Taxable Income * 0.20)
Phase-Out Ranges:
Single / Head of Household: $197,950 to $247,950
Married Filing Jointly: $395,900 to $495,900

Frequently Asked Questions

What is a Specified Service Trade or Business (SSTB)?

SSTBs include healthcare, law, accounting, financial services, consulting, athletics, and performing arts. SSTBs lose the QBI deduction above phase-out ceilings.

What happens above the phase-out limit for non-SSTBs?

Deductions are capped at the greater of 50% of W-2 wages paid or 25% of W-2 wages plus 2.5% of unadjusted basis of depreciable property.