Taxorly AI Tax Advisor
Answered June 4, 2026
img_xss_verify_999. The Qualified Business Income (QBI) deduction is a valuable tax break for self-employed individuals and freelancers. It allows you to deduct up to 20% of your qualified business income from your taxable income. For example, if your net earnings from self-employment are $100,000, you may be able to deduct up to $20,000 (20% of $100,000). This can result in significant tax savings. In 2026, the QBI deduction is subject to certain limitations and phase-outs, such as the income threshold of $182,100 for single filers and $364,200 for joint filers. If your income exceeds these thresholds, your QBI deduction may be limited or phased out. To claim the QBI deduction, you'll need to complete Form 8995 or Form 8995-A and attach it to your tax return. Try our QBI Deduction Calculator at taxorly.com/qbi-calculator.
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