§199A QBI Deduction Calculator

How much of your pass-through income actually qualifies for the 20% deduction?

A 2025 tax year estimate for the §199A qualified business income deduction — including SSTB restrictions, the W-2 wage / UBIA limitation, and the phase-in bands.

This is a planning tool, not tax advice. The output is an estimate based on 2025 §199A thresholds and the inputs you provide. Your actual QBI deduction depends on entity structure, aggregation elections (§1.199A-4), rental real estate safe harbor eligibility, negative QBI carryovers, PTP loss treatment, allocable share of W-2 wages and UBIA among pass-through owners, and other facts specific to your return. Consult a CPA before filing. See our Tax Planning and Taxation pages, or request a consultation.
Filing status

The §199A thresholds are twice as high for MFJ as for Single/HoH/MFS.

Pick a filing status.

Form 1040 line 15 with the §199A deduction (line 13) added back. This is the number that determines which phase-in zone you're in.

Enter an amount of 0 or more (max 100,000,000).

§199A(e)(3): "net capital gain" means net LTCG over net STCL, plus qualified dividend income. Enter the combined total — it's subtracted before applying the 20%-of-taxable-income cap. Leave blank or 0 if none.

Enter 0 or more (must be less than taxable income).

Net QBI from all qualified trades or businesses: Schedule C, Schedule E rental (if a §162 trade or business or a §1.199A-1(b)(14) safe-harbor rental), S-corp K-1 Box 17V, partnership K-1 Box 20Z. Do not include W-2 wages, reasonable comp paid to yourself, guaranteed payments, or investment income.

Enter an amount (can be negative for a loss year; max 100,000,000).

Is the business a Specified Service Trade or Business (SSTB)?

SSTB status only matters if your taxable income is above the threshold. Below threshold, the SSTB restriction doesn't apply.

What counts as an SSTB?

SSTB fields under §199A(d)(2) — the deduction is limited or eliminated above the threshold:

  • Health (physicians, dentists, veterinarians, therapists, nurses)
  • Law
  • Accounting (yes, CPA firms are SSTBs)
  • Actuarial science
  • Performing arts
  • Consulting
  • Athletics
  • Financial services, brokerage, investment management, investing, trading, dealing in securities / partnership interests / commodities
  • Any trade or business where the principal asset is the reputation or skill of one or more employees or owners (e.g., paid endorsement / licensing income, appearance fees)

Explicitly excluded (not SSTBs): architecture and engineering. Real estate, insurance brokerage, and banking are also generally not SSTBs under the final regulations.

De minimis rule (§1.199A-5(c)(1)): if SSTB gross receipts are less than 10% of total gross receipts (5% if receipts exceed $25M), the SSTB taint does not spread to the non-SSTB portion.

Pick one.

Total W-2 wages paid (Box 1) by the qualified trade or business — includes your own reasonable comp if you're an S-corp owner. Only matters if you're in the phase-in range or above; leave blank if below threshold. For pass-through allocations, use your allocable share.

Enter 0 or more.

Unadjusted basis immediately after acquisition of qualified depreciable property — the original cost before any depreciation. Property qualifies if still within its depreciable period (greater of regular recovery period or 10 years). Only matters in the phase-in range or above.

Enter 0 or more.

Section 199A dividends from REITs (1099-DIV Box 5) plus qualified publicly-traded partnership income. This is a separate 20% component — no wage limit, no SSTB test.

Enter 0 or more.

Estimated §199A deduction — 2025

ComponentAmount

Estimated federal tax savings

Pick your marginal federal rate. The §199A deduction reduces taxable income dollar-for-dollar, so cash savings equal the deduction times your marginal rate.

How this was calculated

This is an estimate — not tax advice.

Actual §199A treatment depends on aggregation elections under §1.199A-4, allocable share of W-2 wages and UBIA from pass-throughs (K-1 Box 17W/X, Box 20Z), rental real estate qualification under Rev. Proc. 2019-38 safe harbor, negative QBI carryover netting rules, PTP loss suspensions, trust and estate rules under §199A(f), and IRS COLA adjustments. A CPA should confirm the number before filing.

Talk to a CPA about your §199A strategy →

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2025 §199A thresholds at a glance

Filing status Zone 1 ceiling
(full deduction)		 Zone 2 range
(phase-in)		 Zone 3 floor
(wage limit / SSTB out)
Married filing jointly$394,600$394,600 – $494,600$494,600+
Single$197,300$197,300 – $247,300$247,300+
Head of household$197,300$197,300 – $247,300$247,300+
Married filing separately$197,300$197,300 – $247,300$247,300+

Source: Rev. Proc. 2024-40. §199A originally sunset after 2025; the OBBBA (2025) made it permanent and preserved the 20% rate. Thresholds are indexed annually for inflation.

Want the full rules?

Get the §199A quick-reference sheet with 2025/2026 thresholds by email.

We'll send you a one-page PDF that covers the §199A phase-in mechanics, the SSTB definitions and de minimis rules, the W-2/UBIA limitation, the aggregation election under §1.199A-4, the rental real estate safe harbor, and the 2025 vs 2026 threshold table. Email only — no phone, no firm size, nothing else.

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© Laléa & Black, LLP. 2025 §199A thresholds per Rev. Proc. 2024-40. §199A was made permanent by the One Big Beautiful Bill Act (OBBBA, 2025), preserving the 20% deduction rate. This tool is directional and does not account for aggregation, negative QBI carryovers, PTP loss suspension, trust or estate treatment under §199A(f), or state-level §199A conformity (or lack thereof). This tool does not create a client relationship, is provided "as-is" without warranty, and does not constitute tax, legal, or accounting advice.