How much qualified business income deduction can I claim?
Estimate your Section 199A qualified business income deduction for 2025, 2026, or 2027 planning using taxable income, QBI, W-2 wages, UBIA, REIT/PTP income, and SSTB status. The calculator applies current IRS threshold and phase-in rules to show a practical QBI estimate.
QBI deduction calculator
Quick answer
The QBI deduction generally starts at 20% of qualified business income, but taxable income, SSTB status, W-2 wages, UBIA, REIT/PTP income, and capital gain income can limit the final deduction.
Also answers
- Section 199A calculator
- qualified business income deduction
- Form 8995 calculator
- SSTB QBI phaseout
Good fit when
- Freelancers and pass-through owners
- S-corp or partnership owners with W-2 wage limits
- REIT or PTP income planning
Have ready
- Taxable income before QBI
- QBI, W-2 wages, UBIA, REIT/PTP income
- SSTB status and capital gain income
Result you get
Estimated QBI deduction, wage/property limitation, phaseout percentage, and income cap.
How this calculation works
- Applies the 20% QBI starting point.
- Uses the correct 2025, 2026, or 2027 planning taxable income threshold by filing status.
- Phases in W-2 wage and UBIA limits when taxable income is above the threshold.
- Reduces or eliminates SSTB income inside and above the phaseout range.
- Applies the 20% taxable-income limitation after net capital gain and qualified dividends.
Common mistakes and caveats
- Multiple businesses, aggregation elections, cooperatives, losses, and patron reductions can require Form 8995-A worksheets.
- SSTB classification is fact-specific.
- The 2026 minimum QBI deduction rule is modeled as a planning estimate and should be confirmed on final forms.
FAQ
Does this replace Form 8995 or Form 8995-A?
No. It estimates the deduction and flags the major wage, property, SSTB, and income-limit rules.
Why do W-2 wages and UBIA matter?
Above the IRS threshold, the QBI deduction can be limited by business W-2 wages and qualified property basis.
Last updated & sources
Last updated June 22, 2026.
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