Section 199A (Qualified Business Income) Deduction

As part of the 2017 tax reform law, sole proprietors and owners of pass-through businesses like LLCs, S corporations, and partnerships may be eligible for a deduction of up to 20% to lower the tax rate for qualified business income. The deduction is subject to threshold and phased-in amounts. For 2025, the threshold amounts begin at $394,600 for married taxpayers filing jointly.