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Freelancer QBI Deduction Calculator

The Qualified Business Income deduction lets freelancers deduct up to 20% of business income — but the rules are complex. This calculator shows your exact QBI deduction and the tax savings.

Qualified Business Income Deduction Calculator

Estimate your Section 199A QBI deduction for pass through business income

📋QBI Deduction
$16,000.00
💰Tax Savings
$3,520.00
📊New Taxable Income
$64,000.00
Qualified Business Income$100,000.00
QBI × 20%$20,000.00
Taxable Income Cap (20%)$16,000.00
QBI Deduction Allowed$16,000.00
Taxable Income Before QBI$80,000.00
Tax Before QBI Deduction$12,312.00
Tax After QBI Deduction$8,792.00
Tax Savings$3,520.00
New Taxable Income$64,000.00

The QBI deduction (Section 199A) allows eligible self employed and small business owners to deduct up to 20% of qualified business income. The deduction is limited to 20% of taxable income (before QBI deduction). The deduction is still available for 2026. Income thresholds and W-2 wage limitations may apply for high income earners. Consult a tax professional for your specific situation.

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Freelancer QBI deduction calculator for the Section 199A qualified business income deduction

Frequently Asked Questions

What is the QBI deduction for freelancers?+

Section 199A lets you deduct up to 20% of qualified business income from a pass-through entity (sole prop, LLC, S-Corp). On $100,000 of QBI, you could deduct $20,000 — reducing taxable income and saving $4,400-$7,200 depending on your bracket.

Who qualifies for the QBI deduction?+

Most freelancers and small business owners qualify if their income is below the threshold ($191,950 single / $383,900 MFJ in 2026). Above these thresholds, W-2 wages paid and property basis limit the deduction. Specified service trades (consulting, law, medicine) have additional limitations above the threshold.

How do I claim the QBI deduction?+

File Form 8995 (simple) or 8995-A (complex) with your 1040. The deduction is taken on line 13 of Schedule 1. You don't need to itemize — it's available even if you take the standard deduction. Your tax software or accountant handles the calculation.

What is the QBI deduction for freelancers?

Section 199A lets you deduct up to 20% of qualified business income from a pass-through entity (sole prop, LLC, S-Corp). On $100,000 of QBI, you could deduct $20,000 — reducing taxable income and saving $4,400-$7,200 depending on your bracket.