Qualified Business Income Deduction Phaseout Calculator

Model your 2024 Section 199A deduction by blending taxable income, pass-through QBI, W-2 wages, and optional UBIA so you can see the exact deduction that survives the phase-in band and wage limits.

Match your 2024 filing status to the numeric code shown in the label.
Use taxable income before applying the qualified business income deduction.
Aggregate the 2024 qualified business income from the trades you are combining.
Enter the total W-2 wages allocable to the same businesses that produced the QBI.
Defaults to $0. Provide UBIA to apply the 25% wages + 2.5% qualified property test.
Leave blank for non-SSTB. Enter 1 to apply the faster SSTB phase-out.

For planning only—confirm exact figures with a tax professional and current IRS guidance.

Examples

  • MFJ filer with $420,000 taxable income, $220,000 QBI, $80,000 wages, and $200,000 UBIA ⇒ $42,556.00 deduction after 36.10% of the band applies
  • Single SSTB with $215,000 taxable income, $120,000 QBI, $20,000 wages ⇒ $9,457.29 deduction with SSTB reduction

FAQ

How do I choose the filing status code?

Enter 1 for Single or Head of Household, 2 for Married Filing Jointly, 3 for Married Filing Separately, and 4 for a trust or estate to load the proper 2024 phase-in band.

Does the calculator account for multiple businesses?

Yes. Aggregate QBI, W-2 wages, and UBIA across the trades you have elected to combine under Section 199A before entering totals.

What if my taxable income includes capital gains?

Section 199A caps the deduction at 20% of taxable income minus net capital gains. Subtract capital gains before entering the taxable income figure if they are significant.

Can I model specified service businesses?

Set the optional SSTB field to 1 to apply the accelerated phase-out that ratably reduces QBI, wages, and UBIA through the income band.

How should I treat negative qualified business income?

Section 199A nets losses against income. Enter zero for QBI when your overall aggregation is negative and track the loss carryforward separately with your tax advisor.

Additional Information

  • 2024 phase-in thresholds: $191,950 for single/HOH, $383,900 for MFJ, $191,950 for married filing separately, and $14,600 for trusts and estates.
  • Above the threshold, the deduction becomes the lesser of 20% of QBI, 20% of taxable income, or the W-2/UBIA wage limitation.
  • The wage limit equals the greater of 50% of wages or 25% of wages plus 2.5% of qualified property UBIA across the trades you aggregate.
  • Specified service trades scale down QBI, W-2 wages, and UBIA across the phase-in band until the deduction disappears at the upper threshold.
  • Outputs highlight the theoretical maximum, the amount allowed, and the dollars lost so you can plan Roth conversions, retirement contributions, or bonuses to optimize the deduction.

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