Qualified Business Income deduction

[seattledave]

My small business falls in the QBI deduction category but I'm not sure if all of my sub-s corp earnings are allowed to be considered for the deduction? Part of my work is "consulting" to small businesses while the other part is technology troubleshooting, repair and setup of computer hardware/software. How does the QBI deduction work specifically?

[DianeW777]

The qualified business income deduction (QBID) is a tax deduction that allows eligible self-employed and small-business owners to deduct up to 20% of their qualified business income on their taxes. Generally, total taxable income in 2021 must be under $164,900 for single filers or $329,800 for joint filers to qualify.

• What is QBID?
• IRS FAQs on QBID

The income information will flow from the Scorp to the K-1 and get reported on your individual return.