Understanding the QBI deduction requires more than knowing the basic 20% calculation. Once taxable income reaches certain levels, W-2 wages, business assets, phase-in rules, and the type of business generating the income can significantly affect the calculation.
Join Jason Dinesen, EA, for Making Sense of the QBI Deduction, a practical examination of QBI from the basic calculation through more advanced scenarios.
Jason walks through examples involving sole proprietorship income, passthrough income, losses, and taxpayers whose income falls below, within, and above the applicable threshold ranges. You'll examine how W-2 wages and the unadjusted basis of business assets enter the calculation and how SSTB status can reduce or eliminate the deduction as income increases.
The course also explores situations involving multiple businesses and when aggregation may affect QBI calculations. If time allows, Jason examines rental real estate, including when a rental may constitute a trade or business and the safe harbor provided under Revenue Procedure 2019-38.
Through calculations and real-world scenarios, this course provides a deeper understanding of the factors that can change a taxpayer's QBI deduction.
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:
- Determine QBI from common business and passthrough income sources.
- Apply the basic QBI deduction calculation.
- Explain the treatment of QBI losses and loss carryforwards.
- Analyze how threshold and phase-in rules affect QBI calculations.
- Recognize the impact of W-2 wages, business assets, and SSTB status.
- Identify when aggregation may affect the calculation of QBI for multiple businesses.
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 are the QBI income thresholds for 2026?
For 2026, the threshold begins at $403,500 for married filing jointly, $201,775 for married filing separately, and $201,750 for single and head-of-household filers. The course also examines the applicable phase-in ranges.
How do W-2 wages and business assets affect the QBI deduction?
When income exceeds applicable thresholds, W-2 wages paid by the business and the unadjusted basis of certain business assets can become part of the QBI calculation. Jason demonstrates how these limitations work through calculation examples.
What is an SSTB for QBI purposes?
An SSTB, or Specified Service Trade or Business, includes certain businesses in areas such as health, law, accounting, consulting, financial services, brokerage services, investing, and trading. SSTB status can affect the QBI deduction when taxable income exceeds applicable thresholds.
Can an SSTB lose the QBI deduction completely?
Yes. The presentation explains that SSTB status has no impact below the threshold, begins to affect the deduction within the phase-in range, and can eliminate the QBI deduction once income exceeds the top of the applicable range.
Can multiple businesses be aggregated for QBI purposes?
In certain circumstances. The course examines the requirements businesses must meet to be aggregated and why aggregation may become relevant when income exceeds the applicable thresholds.
