Our flowchart of the QBI deduction will help you understand the deduction and whether you’re able to claim it. You can also use this flowchart to find out if your deduction is subject to limitations, as well as show you how to calculate your limitations and select your final deduction amount.
Have questions about the QBI deduction? We have answers!
- What counts as qualified business income (QBI)? What doesn’t? Get the answer.
- What’s a specified service trade or business? Get the answer.
- Can I aggregate multiple businesses? Yes! Read the rules.
- Can you walk me through calculating my deduction and the limitation? Yes, read this blog.
- How do business losses affect your deduction? Find out here.
Our flowchart makes it look simple, but this is a complex deduction. We recommend you consult with a tax professional to better understand how this deduction applies to you and impacts your tax return.
Originally published 4/3/2019. Updated 5/5/2021.
Have more questions about the contents of our QBI deduction flowchart? Let’s talk!