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Calcimator

QBI Deduction Calculator

Calculate your Section 199A Qualified Business Income deduction with W-2 wage limits, UBIA property tests, and SSTB phase-out rules for 2024.

Inputs

$
$
$
$

Results

QBI Deduction (Section 199A)

$29,195.00

≈ 15 gaming PCs

Estimated Tax Savings

$7,007.00

≈ 7 smartphones

Effective QBI Deduction Rate19.46%
Tentative Deduction (20%)$30,000.00
W-2 / UBIA Limit$25,000.00
Taxable Income Limit (20%)$40,000.00
How to Use This Calculator
  1. Enter Qualified Business Income from your pass-through entity (sole prop, partnership, S-corp, or LLC).
  2. Set Total Taxable Income — the phase-out range begins at $191,950 single / $383,900 MFJ (2024).
  3. Enter W-2 Wages Paid by the business — the W-2 wage limitation applies above the phase-out range.
  4. Set UBIA (unadjusted basis of qualified property) if you have significant depreciable business assets.
  5. Select Specified Service Business (SSTB) — law, medicine, consulting, and other SSTBs lose the deduction above the phase-out.
  6. Review QBI Deduction (Section 199A) and Estimated Tax Savings.

What each input means

Qualified Business Income ($)
Net income from your pass-through business (sole proprietorship, partnership, S-corp, or LLC).
Total Taxable Income ($)
Your taxable income before the QBI deduction. Determines phase-out and 20% cap. Uses 2024 thresholds ($191,950 single / $383,900 MFJ).
W-2 Wages Paid by Business ($)
Total W-2 wages paid by the qualifying business (including your own if S-corp).
UBIA of Qualified Property ($)
Unadjusted basis immediately after acquisition of depreciable business property (within depreciable period).
Filing Status
Determines the income threshold where W-2/UBIA limitations begin.
Specified Service Business (SSTB)?
SSTBs (law, medicine, consulting, etc.) lose the deduction entirely above the phase-out range.

What each result means

QBI Deduction (Section 199A)
Your qualified business income deduction after all limitations.
Estimated Tax Savings
Approximate tax savings assuming a 24% marginal rate.
Effective QBI Deduction Rate
Your actual deduction as a percentage of QBI (max 20%).
Tentative Deduction (20%)
20% of QBI before any wage, UBIA, or income limitations.
W-2 / UBIA Limit
Greater of 50% of W-2 wages or 25% of wages + 2.5% of UBIA.
Taxable Income Limit (20%)
20% of taxable income cap on the QBI deduction.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Qualified Business Income ($) = 150000, Total Taxable Income ($) = 200000, W-2 Wages Paid by Business ($) = 50000, UBIA of Qualified Property ($) = 0 = 6 input(s) provided
  2. Calculate QBI Deduction
    QBI Deduction
    29195 = $29,195
  3. Calculate Estimated Tax Savings
    Estimated Tax Savings = qbiDeduction * 0.24
    7007 = $7,007
  4. Calculate Effective QBI Deduction Rate
    19.46 = 19.46%
  5. Calculate Tentative Deduction
    Tentative Deduction = qbi * 0.20
    30000 = $30,000

Engine last updated . Checked against 3 independently-derived tests — how we verify calculators.

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