Qualified Business Income Deduction Explained
By Tax&Facts | Published on | Read: 3 Mins
Overview
The Qualified Business Income (QBI) deduction is a significant tax benefit under OBBBA for eligible business owners. It allows certain taxpayers to deduct up to 20% of their qualified business income, helping reduce taxable income.
Use our tool to estimate your QBI deduction quickly. Enter your business and income details to see potential tax savings.
For an in-depth explanation and examples:
👉 Read the
complete QBI guide
FAQs
1. What is the Qualified Business Income Deduction?
It allows eligible business owners to deduct up to 20% of qualified business income from a
qualified trade or business, lowering taxable income.
2. Who is eligible for the QBI deduction?
Eligible taxpayers include sole proprietors, partnerships, S corporations, and some LLC
owners. Certain service-based businesses may have limitations depending on income levels.
3. Are there limits to the QBI deduction?
Yes. Limits may apply based on taxable income, business type, W-2 wages, and qualified
business property. High-income taxpayers may receive a reduced deduction.
4. How do I calculate the QBI deduction?
The calculation depends on qualified business income, taxable income, W-2 wages, and
business property. Our tool simplifies the process and provides an estimate.
Tools and Resources
Quick Calculator
Estimate taxes quickly based on salary income only.
👉 Quick Tax Calculator
Easy Calculator
Include deductions and dependents for a clearer estimate.
👉 Easy Tax Calculator
Advanced Calculator
Estimate detailed taxes including business income, investments, deductions, or
dependents.
👉 Advanced Tax Calculator
