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Who qualifies for the 20% QBI deduction and how much can it save me?

The Qualified Business Income deduction lets many self-employed people and pass-through owners deduct up to 20% of their qualified business income, directly cutting taxable income. Below the taxable-income thresholds the IRS updates each year, almost any profitable sole proprietor, partnership, or S-corp owner qualifies. Above those thresholds, limits based on W-2 wages paid and business property kick in, and specified service businesses like consulting, law, and health can be phased out entirely at higher incomes. On, say, $80,000 of qualified income, the deduction could shave $16,000 off taxable income, saving thousands in tax. It's set to change under scheduled law shifts, so confirm current status at irs.gov. Estimate your benefit with the Self-Employed Hub at wealthserene.com/tools/self-employed-hub.

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