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Watch this short clip from Jason Dinesen, EA, for a look at what you'll explore in Making Sense of the QBI Deduction.
The Qualified Business Income (QBI) deduction can seem straightforward when taxable income falls below the applicable threshold. But as income increases and additional rules come into play, determining the deduction can become much more complicated.
In Making Sense of the QBI Deduction, Jason Dinesen, EA, breaks down QBI using practical examples and step-by-step calculations. The course begins with the fundamentals, including what qualifies as QBI, adjustments that can affect QBI, and how business losses are handled.
From there, you'll explore what happens when taxable income crosses the applicable thresholds. Jason examines the 2026 threshold and phase-in amounts, W-2 wage and business asset limitations, and the special rules affecting specified service trades or businesses (SSTBs). The course also introduces more advanced considerations involving multiple businesses, aggregation, and rental real estate.
Whether you're reviewing QBI fundamentals or working to better understand more complex calculations, this course provides a practical look at how the different pieces of the QBI deduction fit together.
Recorded September 16, 2026
This course counts for 2 hours of IRS CE under the category of Federal Tax Law Related Matters.
Learning Objectives
After completing this course, participants should be able to:
- Identify income that may qualify as QBI.
- Calculate QBI while considering adjustments associated with business income.
- Explain how QBI losses can affect current and future calculations.
- Recognize how income thresholds, W-2 wages, and business assets can affect the QBI deduction.
- Describe how SSTB rules can limit or eliminate the deduction.
- Identify QBI considerations involving multiple businesses and rental real estate.
About the presenter:
Jason Dinesen (EA, LPA) is a tax nerd, entrepreneur, tax expert, and a well-known presenter of continuing education courses.
Known for his sharp tax interpretations, he is one of the quickest to bring the analysis of the latest tax updates and IRS guidance to the professional community. Jason has coached over 200,000 accounting, tax, and HR professionals on various topics of accounting, individual taxation, corporate taxation, professional ethics, and much more.
He has presented dozens of webinars on Form 1099 (for 10 years on this subject!), marriage in the tax code, tax updates, the new Form W-4, payroll updates, filing status, tax credits, corporation and partnership taxation, and other issues relating to the modern-day setting.
Frequently Asked Questions
What is the Qualified Business Income deduction?
The QBI deduction is based on qualified business income from certain businesses and other eligible sources. In basic situations, the calculation compares 20% of QBI with 20% of taxable income before the QBI deduction, with the smaller amount generally determining the deduction.
What types of income may qualify as QBI?
QBI may include income from sole proprietorships and farms, certain income from S corporations and partnerships, some rental real estate activities, and qualified dividends from REITs and publicly traded partnerships.
How do business losses affect the QBI deduction?
Business losses can reduce QBI. When total QBI is negative, the negative amount carries forward and can affect the calculation in future years.
What happens when taxable income exceeds the QBI threshold?
The calculation becomes more complex. W-2 wages paid by the business, the unadjusted basis of certain business assets, and SSTB restrictions may begin to affect the available deduction.
Does this course cover the 2026 QBI rules?
Yes. The course discusses the 2026 QBI income thresholds and expanded phase-in ranges and demonstrates how those amounts can affect QBI calculations.
