The income threshold for the Qualified Business Income Deduction has increased for tax year 2024. The new thresholds are:
- Married filing Joint - $383,900
- All other filing statuses - $191,950
For tax year 2023, the threshold was:
- Married filing Joint - $364,200
- All other filing statuses - $182,100
For tax year 2022, the threshold was:
- Married Filing Joint -$340,100
- All other filing statuses - $170,050
For tax year 2021, the threshold was:
- Married Filing Joint -$329,800
- Single, Head of Household, Surviving Spouse or Trust/Estate - $164,900
- Married Filing Separate- $164,925
For tax year 2020, the threshold was:
- Married Filing Joint -$326,600
- All other filing statuses - $163,300
For tax year 2019, the threshold was:
- Married Filing Joint -$321,400
- Single, Head of Household, Surviving Spouse or Trust/Estate - $160,700
- Married Filing Separate- $160,725
What form do I use?
If your income is above the threshold, or you have a 1099-PATR, the deduction will be calculated on form 8995-A. If your income is below the threshold, Form 8995 will be used.