I understand, and it's a very complicated calculation. I'll try to give two examples. In example 1, you are self-employed and earned 40000 of net self-employment income. Your AGI (which includes your se tax deduction, and se health insurance deduction) is $32,000. Your QBI deduction is the lesser of 20% of AGI ($6400) or 20% of your qualified business income. (8,000). This is why your QBI deduction is $6400.
Example 2. Same amount of self-employment, but you also have a job paying $10,000 in wages reported on a W-2. Since now your AGI is $42,000, you will get the full 8,000 of QBI deduction.
Your deduction will never be more than 20% of your taxable income. That having been said, it is quite a nice deduction for the self-employed and pass-through entities. I hope this helps you.
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