Category
Business
Type
Business
2025 Limit
Up to 20% of QBI; phase-out begins $197,300 (single) / $394,600 (MFJ)
2026 Limit
Up to 20% of QBI; phase-out thresholds are indexed annually and depend on filing status, business type, W-2 wages, and qualified property.
IRC Reference
IRC § 199A
Eligibility
Pass-through entity owners (sole prop, partnership, S-Corp)
Notes / Description
W-2 wage and depreciable property limitations apply above thresholds. Specified service trades have additional limits.
