The threshold for claiming 20% of qualified business income is $160,700 for single filers or $321,400 for married filing jointly. If your income is above these thresholds, the business deduction becomes 20% of your business income OR 50% of total wages paid to employees, whichever is less.
If you are in a specified service business, the deduction begins to phase out when your income reaches $160,700 for singles and $321,400 for married filing jointly. The 20% deduction is reduced to $0 when you earn $210,700 for individuals and $421,400 if married filing jointly.
