Are you counting on that full 20% QBI deduction for your 2025 tax return? Not so fast! In Part 3 of our Big Beautiful Tax Bill video series, we dig into the three key filters you must pass to take full advantage of this major tax break.
Here’s what every small business owner needs to know:
1️⃣ 20% of your net business income
You may be eligible to deduct up to 20% of your qualified business income (QBI)—but this only applies to your net profit after expenses. If you’re not maximizing deductions and keeping clean books, you could be leaving money on the table.
2️⃣ 20% of your taxable income
Your deduction is also limited to 20% of your taxable income. That means personal deductions and other income sources affect your final QBI number.
3️⃣ Watch out for income phase-outs
The IRS places income caps on who gets the full deduction. Once your taxable income exceeds a certain threshold, the QBI deduction starts phasing out. If you’re a high earner or married filing jointly, you must plan ahead to avoid losing this powerful benefit.
In this video, I explain how to calculate the deduction and show you strategies for staying within the limits—even if your income is climbing.
🎥 Watch Part 3 now on YouTube
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