QBI Section 199A Deduction 2027 Calculator

Calculate Qualified Business Income (QBI) Section 199A deduction 2027 — 20% deduction on pass-through business income. Income phase-outs apply.

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Section 199A Mechanics

20% deduction of pass-through business income (LLC, S-Corp, Partnership, sole prop). Reduces taxable income. Doesn't reduce SE tax.

2027 Income Thresholds

Single: $191,950. Joint: $383,900. Below = full 20% deduction. Above = phase-out (full at $241,950 single / $483,900 joint).

SSTB Restrictions

Specified Service Trade/Business: lawyer, doctor, consultant, athlete, performer, accountant. Above phase-out, SSTB completely loses 199A. Non-SSTB still gets it (subject to W-2 wage limits).

W-2 Wage Limit

Above threshold, non-SSTB deduction = LESSER of 20% QBI OR 50% W-2 wages paid (25% W-2 + 2.5% qualified property). Pay yourself W-2 to maintain deduction.

Source: irs.gov Section 199A Qualified Business Income Deduction. Last updated: May 2026.