QBI deduction estimator (§199A)
Pass-through owners can deduct up to 20% of qualified business income — now permanent under the 2026 rules. This estimates yours, including the income thresholds and the rules for service businesses.
Estimate only, for planning — not tax advice. Uses 2026 §199A thresholds (Rev. Proc. 2025-32): $201,775 (single/HOH/MFS) and $403,500 (MFJ), with the limits fully phasing in $75,000 / $150,000 above. Below the threshold the deduction is 20% of QBI, capped at 20% of taxable income less net capital gains. Above it, non-service businesses are limited to the greater of 50% of W-2 wages or 25% of wages plus 2.5% of qualified property (UBIA), and service businesses (SSTBs) lose the deduction entirely; within the range, both phase in. A $400 minimum applies to active owners with at least $1,000 of QBI. The deduction does not reduce self-employment tax, and California does not allow it. Confirm with a CPA.
