Qualified Business Income Deduction Calculator

Estimate your Section 199A deduction for pass-through businesses. Make informed tax planning decisions based on your business income, expenses, and tax situation.

Business Information

Income & Business Type
$
$
$
Other Income Sources
$
$

Taxpayer Information

Filing Status & Income
$
Tax Year
Advanced Options

BI Deduction Calculator Assistance

What is the QBI Deduction?

The Qualified Business Income deduction, or Section 199A deduction, is aimed at boosting tax deductions to a maximum 20 percent on earnings by individuals that earn income through qualified businesses or receive wages.

Instruction on Using this Calculator

To compute your QBI deduction, do the following steps:

  1. Enter your qualified business income, business type and other business information.
  2. Enter your tax filing status and amount of pre-QBI taxable income.
  3. Select the tax year you are computing.
  4. Click the QBI deduction calculator and view your results.
  5. Check the calculation in detail and recommendations.

QBI Deduction Limitations

The QBI deduction is subject to limitations on the basis of:

  • Your taxable income (more income earners are restricted in terms of high taxes).
  • The W-2 wages you have paid to your business.
  • Your unadjusted basis in the qualified property you hold in your business.
  • As regards your business, it is a Specified Service Trade or Business (SSTB).

SSTB (Service Trade or Business)

SSTBs are companies in the following arears:

  • Health, law, accounting, actuary science and performing arts.
  • Consulting, athletics, financial services, brokerage services.
  • Any business in which a reputation or skill of one or more employees or owners arises as the greatest asset of the business.
  • SSSTB owners will be fully subject to phase out of QBI deduction at higher income thresholds.

Income Eligibility And Phase-ins

The 2023 QBI limitation thresholds of taxable income are:

  • Married Filing Jointly: $340,100 to $440,100
  • Under the lower threshold: There are no limitations
  • In the range: A gradual restriction phase inwards
  • Beyond the upper threshold; The full restrictions are applicable (SSTBs will receive no deduction).