QBI Deduction Calculator (Section 199A)
Calculate Qualified Business Income deduction for sole proprietors, partnerships, and S-corps. Up to 20% deduction.
Business & Filing Status
QBI excludes capital gains, dividends, interest. Schedule C net profit, partnership/S-corp K-1 Box 1.
SSTB Status (Specified Service Trade/Business)
SSTB deduction limited at higher incomes. Architecture/engineering removed from SSTB.
Wage & Property Limitation
W-2 wages from payroll. S-corp owner salary included but reduces QBI.
UBIA of qualified property: tangible property used in business, depreciable period.
Threshold Analysis
QBI Threshold (single)$$191950
Phase-out Range$$50100
Upper Threshold$$242050
Your Total Taxable Income$$150000.00
Income StatusBelow Threshold (Full Deduction)
QBI Deduction Calculation
Qualified Business Income$$100000.00
Simple Method (20% of QBI)$$20000.00
QBI Deduction$$20000.00
Taxable Income Cap (20%)$$30000.00
Final QBI Deduction$$20000.00
Full 20% QBI Deduction Available
Income below threshold: Full 20% deduction = $$20000.00. Tax savings at 24% rate: $$4800.00. No wage/property limitation applies. File Form 8995 or 8995-A.
Tax Savings Summary
QBI Deduction
$$20000.00
Tax Savings (24%)
$$4800.00
SE Tax
$$14129.55
SE Tax Deduction
$$7064.77
Optimization Strategies
Increase W-2 wages
Already optimized
Buy qualified property
Property adequate
Aggregate businesses
Combine to maximize wage/property limit
Split SSTB/non-SSTB
Separate non-SSTB income qualifies fully
Reduce taxable income
Stay below threshold for full deduction
QBI Deduction Rules
20% of qualified business income deduction. Available for sole props, partnerships, S-corps. SSTB deduction limited above threshold. Wage/property limit for income over threshold. Cap: 20% of taxable income. File Form 8995 (simple) or 8995-A (complex). Deduction expires 2025 unless extended.
Key Points
TCJA created QBI deduction (2018-2025, may be extended). SSTB: health, law, accounting, consulting, financial, performing arts. Architecture/engineering removed from SSTB. Threshold indexed annually. W-2 wages from employees (not contractors). Qualified property: UBIA of tangible property. Aggregation rules allow combining businesses.