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199A Deduction
Calculator 2020
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* Note: Enter the amounts for each separate
business unless you are aggregating businesses
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Enter Information
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Single or Married
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Enter, then tab to next cell
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Helpful 199A Deduction Articles
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Single
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Taxable Income
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For definition of qualified business income see "Tax
Reform: Wow, New 20 Percent Deduction for Business Income"
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Married
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Net Capital Gains and Dividends
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For definition of qualified business income in the final regs see "IRS Issues Final Section 199A Regulations and Defines
QBI"
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Qualified Business Income (QBI)
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For definition of qualified property see "Tax
Reform: Wow, New 20 Percent Deduction for Business Income"
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Specified Service Business?
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For aggregration of businesses see "Caution:
199A Calculator Is Business-by-Business without Aggregation"
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Wages Paid by Business
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For multiple rental business see "How to
Handle Multiple Rental Activities and the 199A Deduction"
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Qualified Property in Business
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For definition of service business see "IRS
Section 199A Final Regs Shed New Light on Service Businesses"
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Yes
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Results
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No
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Your 199A Deduction:
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Other 199A Deduction Calculators
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Phase-In
Taxable Income Threshold
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2019 Calculator
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Status
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Beginning
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Ending
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2021 Calculator
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Single
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163,300
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213,300
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See
Below for Calculation Details
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Married
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326,600
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426,600
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Calculation if Below Phaseout Range
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Lesser of:
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20% of QBI
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20% of *Defined Taxable Income
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Deduction Limit
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* Defined Taxable = Taxable Income - Net Capital Gains
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Calculation for Non-Service Business If in Phaseout Range
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20% of QBI
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Greater of Wage and Asset
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Difference Between QBI and
Greater of Wages/Assets
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Reduction to QBI
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Phaseout Deduction
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Calculation for Non-Service Business Above Phaseout
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20% of QBI (or Defined Taxable
Income if lower)
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50% of Wages
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25% of Wages
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2.5% of Assets
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Greater of 50% Wages vs. 25%
Wages & Assets
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Lesser of QBI (or Defined
Taxable Income) and Wage/Asset
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Calculation for Specified Service Business If in Phaseout
Range
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20% of QBI (multiplied by
applicable percentage)
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Greater of Wage and Asset
(multiplied by applicable percentage)
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Difference Between QBI and
Greater of Wages/Assets
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Reduction to QBI
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Phaseout Deduction
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Calculation for Specifed Service Business If Phased Out
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No Deduction Allowed
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$0
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Copyright 2020 by
W. Murray Bradford, CPA, Ver. 1.1
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