Qualified business income deduction
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Definition
A deduction under Section 199A for certain pass-through business income, subject to wage and taxable-income limits.
Qualified business income deduction in plain English
An S corporation owner asks why the familiar 20 percent pass-through deduction shrank once income climbed. The qualified business income deduction under Section 199A applies to certain pass-through business income, subject to wage and taxable-income limits. Specified service trades or businesses face tighter limits at higher incomes. Check SSTB status and the wage or taxable-income guardrails before you promise the full deduction in a planning recommendation.
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