Qualified Business Income (QBI) Deduction

TaxGlossary term

Definition

A tax deduction that allows eligible self-employed individuals and small business owners to deduct up to 20% of their qualified business income. Also known as the Section 199A deduction, it is subject to income thresholds and business type restrictions.

Related terms

Tax DeductionAn expense that can be subtracted from gross income to reduce taxable income. Common deductions include mortgage interest, student loan interest, and charitable contributions.

Browse the full glossary

Get advice that uses your real numbers

Warren reads your accounts and explains what terms like this mean for your plan. Free to start, no credit card required.

Try Warren Free