If you’re a small business owner, you should know about a small business tax break worth celebrating.
It’s not flashy, and there are no confetti cannons (unfortunately), but this 20% deduction can make a big difference in how much of your hard-earned money you actually get to keep.
The Qualified Business Income (QBI) deduction—also known as Section 199A—is one of the best small business tax breaks available and doesn’t look like it’s going anywhere anytime soon. It lets eligible business owners deduct up to 20% of their qualified business income, meaning you get to keep more of what you earn.
Let’s break it down in plain English (no IRS translator required).
What Is This Small Business Tax Break?
Think of the QBI deduction as a thank you from the IRS for running a business that helps the economy. If your business is a sole proprietorship, LLC, S corporation, or partnership, you might qualify for this 20% small business tax break.
If your business income “passes through” to your personal tax return, you can potentially deduct 20% of it. That’s a serious savings opportunity, without changing how you operate your business.
Who Qualifies for the QBI Deduction?
The short answer is that most small business owners do.
If your total taxable income is below $197,300 (single) or $394,600 (married filing jointly), you can likely claim the full deduction.
If you earn more than that, the IRS starts adding layers. It may depend on:
- How much your business pays in W-2 wages.
- The value of your business’s qualified property.
- Whether you’re in a “specified service” industry, such as law, accounting, or consulting.
Still, for the majority of small businesses, the QBI deduction delivers precisely what it promises, a real tax break that makes a difference.
Why This Small Business Tax Break Matters
There’s a reason tax professionals get excited about Section 199A. It helps entrepreneurs like you grow faster and plan smarter.
Here is how:
- You keep more cash. Lower taxes mean more money in your pocket (or business account).
- You can reinvest in growth. Upgrade your tech, hire help, or take a well-deserved break.
- It levels the playing field. C-Corps got their significant cuts in 2017. This deduction helps pass-through businesses stay competitive.
- You gain strategic flexibility. It can influence how you structure your business, pay yourself, and plan for the future.
- It’s teamwork in action. Working with your accountant ensures you get the full benefit without missing key details.
The Fine Print (Because There’s Always Fine Print)
The QBI deduction was introduced as part of the 2017 Tax Cuts and Jobs Act. It was recently made permanent in 2025. You can count on this small business tax break as part of your long-term tax planning strategy
Don’t Leave This Small Business Tax Break On The Table
Here is a friendly nudge: don’t assume you’re already getting this deduction. Have a conversation with your accountant and make sure you’re getting every dollar you’re entitled to receive.
When it comes to smart business moves, keeping more of what you earn is one worth celebrating.
Are you ready to make the most of your small business tax break?
Let’s chat about how Section 199A can put more money back in your pocket. Contact me today for a free consultation.