QBI Deduction Calculator

Estimate your Qualified Business Income deduction under IRC §199A (Form 8995 / 8995-A) for tax year 2025 -- including the taxable-income phase-in, the Specified Service Trade or Business (SSTB) rules, the W-2 wage / UBIA limitation, and the overall taxable-income cap.

1 Filing Status & Overall Income

These numbers set the §199A taxable-income thresholds and the overall limitation on the deduction.
Form 1040, line 15 amount, but computed without subtracting the QBI deduction itself. Include all income sources (wages, business income, interest, capital gains, etc.), minus above-the-line and itemized/standard deductions.
Net long-term capital gain (Schedule D) plus qualified dividends. Used only for the overall taxable-income limitation in Step 4 -- it does not affect the business-level computation.

2 Business Information

Enter figures for a single trade or business. If you have more than one qualified business, see the note at the bottom of this card.
Net income, gain, deduction and loss effectively connected with the trade or business, excluding items like reasonable compensation to the owner, guaranteed payments, capital gains/losses, dividends, and interest not allocable to the business. Can be entered as negative if the business had a qualified loss.
Total W-2 wages paid to employees during the year, properly allocable to QBI. Only matters once income is above the threshold in Step 1.
Generally the original cost of depreciable tangible property (before depreciation) still within its depreciable period, used by the business. Only matters once income is above the threshold in Step 1.
Is this a Specified Service Trade or Business (SSTB)?
An SSTB is any trade or business involving the performance of services in health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, investing/investment management, or trading -- or any business where the principal asset is the reputation or skill of one or more of its employees or owners (e.g., a business built around a person's name, image, likeness, or endorsement). Above the fully-phased-in income threshold, SSTBs get no QBI deduction at all. Engineering and architecture are specifically carved out of the SSTB definition and are never treated as SSTBs.
This calculator handles one trade or business. If you have multiple qualified businesses, aggregation elections under Reg. §1.199A-4, REIT dividends or publicly traded partnership (PTP) income, a specified agricultural or horticultural cooperative patronage dividend, or a business held through a trust or estate, the computation is materially more involved than this tool covers -- these situations are best handled in a consultation with Fulcrum Tax Services.

3 Step-by-Step Breakdown

This shows exactly how the deduction was computed, so you can see why it was (or wasn't) limited.
Source

IRC §199A; Form 8995 (2025) and Form 8995-A (2025) and their Instructions; Rev. Proc. 2024-40, §2.06 (2025 inflation-adjusted threshold and phase-in amounts). See the HTML comment at the top of this page's source for the exact figures used.

4 Result

Tentative 20% of QBI
$0
Business-level QBI component
$0
Overall taxable-income limit (20% × (TI − net cap gain))
$0
Final estimated QBI deduction
$0

Important — read before relying on this estimate

This tool provides an ESTIMATE ONLY. It is a simplified, educational planning tool for a single qualified trade or business and does not constitute tax advice, a completed Form 8995 / 8995-A, or a guarantee of any particular deduction amount or refund. It does not account for: aggregation of multiple trades or businesses (Reg. §1.199A-4); qualified REIT dividends or publicly traded partnership (PTP) income (these get their own 20% component under Form 8995-A Part IV, not covered here); negative QBI carryforwards from a prior year (which reduce this year's QBI before the deduction is computed); patrons of specified agricultural or horticultural cooperatives; income earned through a trust or estate; the Alternative Minimum Tax; state or local income tax; or any other credits, deductions, or limitations on your return. Figures used are 2025 inflation-adjusted amounts per Rev. Proc. 2024-40 and are subject to change or correction. Always confirm results with a qualified preparer before filing -- contact Fulcrum Tax Services for an accurate, complete calculation.

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