What is the QBI 20% deduction and can I claim it as a self-employed person?

The Qualified Business Income (QBI) deduction lets many self-employed people and pass-through owners deduct up to 20% of their qualified business profit, directly reducing taxable income. If you net $80,000 from your business, you might deduct around $16,000 before tax — a meaningful break that requires no spending, just earning eligible income. It applies to sole proprietors, partnerships, S-corps, and most LLCs, but not C-corps. Below the income thresholds (around $191,950 single / $383,900 MFJ for 2024-level figures, indexed annually) almost any business qualifies. Above those thresholds, "specified service" businesses — like consulting, law, health, and finance — start phasing out, and wage/property limits kick in. It's claimed on Form 8995 or 8995-A. Because the high-earner rules get complex, model your taxes at wealthserene.com/tools/tax-strategies.