What is the QBI (Qualified Business Income) deduction?

The Qualified Business Income (QBI) deduction lets many owners of pass-through businesses - sole proprietors, partnerships, S corporations, and some others - deduct up to a set percentage of their qualified business income. It is claimed in addition to your normal business expense deductions. Higher earners face income thresholds and limits, and some service businesses are treated differently above those thresholds. The rules are detailed and have been subject to legislative change, so confirm the current-year figures and consider consulting a tax professional.