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

Qualified Business Income

Business Type

W-2 Wages Paid

Unadjusted Basis of Qualified Property

Other Income Sources

REIT Dividends

Publicly Traded Partnership Income

I have multiple qualified businesses

Taxpayer Information

Filing Status & Income

Filing Status

Taxable Income (Before QBI Deduction)

Tax Year

Advanced Options

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Consider state tax impact

QBI Deduction Results

Total QBI Deduction

$30,000

This represents 20% of your Qualified Business Income

Calculation Breakdown

Here's how your QBI deduction was calculated based on your inputs:

Qualified Business Income:

$150,000

20% of QBI:

$30,000

W-2 Wages:

$50,000

50% of W-2 Wages:

$25,000

25% of W-2 Wages + 2.5% of Qualified Property:

$17,500

Greater of Steps 4 and 5:

$25,000

Application of Income Threshold:

Full QBI allowed

Final QBI Deduction:

$30,000

Income Threshold Analysis

The QBI deduction limitations phase in over specific income ranges based on your filing status:

Full Deduction Phase-In Range Full Limitation

Income Threshold Status

Your taxable income of $250,000 is within the phase-in range for Married Filing Jointly ($340,100 to $440,100 for 2023). This means the W-2 wage and qualified property limitations are partially applied to your QBI deduction.

Calculation Method	Amount	Limitation Applied	Final Amount
20% of QBI	$30,000	None	$30,000
50% of W-2 Wages	$25,000	0%	$25,000
25% of W-2 Wages + 2.5% of Property	$17,500	0%	$17,500

Tax Planning Recommendations

Based on your inputs, here are some tax planning strategies to consider:

Your QBI deduction is not currently limited by W-2 wages or qualified property. Continue monitoring if your income increases.
Consider increasing W-2 wages if your taxable income rises above the threshold limits, as this could maximize your QBI deduction.
Track and document your qualified business property to ensure you're accounting for all eligible assets.
Review your retirement contributions to potentially reduce your taxable income and stay below the threshold limits.

Business Information

Taxpayer Information

QBI Deduction Results

Calculation Breakdown

Income Threshold Status

Tax Planning Recommendations

QBI Deduction Calculator Help

What is the QBI Deduction?

How to Use This Calculator

QBI Deduction Limitations

Specified Service Trade or Business (SSTB)

Income Thresholds and Phase-Ins