Use this Qualified Business Income (QBI) deduction calculator to easily determine your potential tax savings as a qualified small business owner.

Qualified Business Income Deduction Calculator

This tool helps you estimate your Qualified Business Income (QBI) Deduction, which is part of the Tax Cuts and Jobs Act (TCJA) and beneficial for owners of pass-through entities. Enter your qualified business income below to calculate your potential deduction.

How to Use the Calculator

Input your estimated or actual qualified business income in the field provided and click “Calculate”. The result will show your estimated QBI deduction based on the provided income.

How It Calculates

The calculator applies the 20% deduction rule then compares it with the filing status limitation. It provides the lesser of the two values as your potential QBI deduction.

Limitations

The calculator assumes a single filer status and does not account for more complex scenarios like multiple businesses, specifics of the service type, or varying tax brackets. For accurate individual or business advice, please consult with a tax professional.