Rates and Limits · https://ratesandlimits.com/qbi-deduction-threshold/2024/service-business-calculator

Taxable income left for a service business, 2024

This works out one number from the QBI Deduction Threshold figures published for 2024. Every amount it uses is below, with the document it was read from. What you enter is your own: this site has no way to check it, and the answer it produces is not a published figure.

Specified service businesses above the range. Specified service trades or businesses are generally excluded from the definition of a qualified trade or business when a taxpayer’s taxable income, before the deduction, exceeds the threshold plus the phase-in range. For 2024, that means the exclusion applies once taxable income is above $483,900 for married filing jointly or above $241,950 for single filers and other returns. When such a business is excluded, none of its income, wages, or unadjusted basis of qualified property are taken into account when figuring the deduction. If the service business is conducted through a pass-through entity, the same limitation applies to the pass-through items. Taxpayers whose income falls within the phase-in range may still take a partial amount into account, but those above the top of the range lose the benefit entirely for that business.

Full explanation, with the source it is read from

Not the one you need? The same year also has QBI deduction on any other return, QBI deduction on a joint return, QBI deduction filing separately.

Phase-in range top, joint filers$483,900

Phase-in range top, single filers$241,950

Phase-in range top, married filing separately$241,950

Effective 2024-01-01Source: Rev. Proc. 2023-34 (IRS)Verified 2026-09-04

QBI component rate, Taxable income limit rate, W-2 wage limit rate, Alternative W-2 wage rate, Qualified property rateSource: 2024 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)Verified 2026-09-04

How it is worked out

The published amount less the amount you enter, rounded to the nearest cent. Where what you enter is the larger of the two, the answer is nothing rather than a negative amount.

Your filing status, from the 3 this year publishes: Phase-in range top, single filers ($241,950), Phase-in range top, joint filers ($483,900), Phase-in range top, married filing separately ($241,950). The calculator uses the one you pick and says which.

Figures in this colour are computed from the amounts above. They are not published figures and no document states them.

Work it out

Your filing status

Your taxable income before this deduction

The live calculator needs JavaScript. The table below covers common amounts and is computed the same way.

Worked out for common amounts

Your taxable income before this deduction	Phase-in range top, single filers	Phase-in range top, joint filers	Phase-in range top, married filing separately
150,000	$91,950	$333,900	$91,950
250,000	$0	$233,900	$0
300,000	$0	$183,900	$0
400,000	$0	$83,900	$0
500,000	$0	$0	$0

How each figure was verified

Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.

Rev. Proc. 2023-34 (IRS)

Phase-in range top, joint filers: Married Individuals Filing Joint Returns $383,900 $483,900
Phase-in range top, single filers: All Other Returns $191,950 $241,950
Phase-in range top, married filing separately: Married Individuals Filing Separate Returns $191,950 $241,950

Fetched 2026-08-29T02:34:04.315Z
Verified 2026-09-04
Stored text sha256 8eccc04edeb8f99c97dc5e11688db27c1f8846a1f2be816fbd17df525890f38f

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The same calculator for another year: 2026, 2025