The QBI deduction is generally 20% of business income. TaxSlayer calculates the QBI deduction automatically; don’t manually change it.

  • If 2025 taxable income, Line 15, plus the QBI deduction, Line 13, exceeds $197,300 ($394,600 if MFJ), the return is out-of-scope.
  • The QBI deduction can be less than 20% of business income. When the amount of taxable income that is in excess of any net capital gain is less than business income, then the 20% calculation is done on the smaller number.
  • The QBI deduction can be more than 20% of business income if there are section 199A (REIT) dividends reported in box 5 of Form 1099-DIV, because the deduction also includes 20% of those dividends.
  • Under no circumstances should the Qualified Business Income Deduction Amounts page be used (available from the Schedule C menu).

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