For 2025, the Section 199A deduction for qualified business income, or QBI, is worth up to 20% of eligible revenue, with some limitations. This applies to so-called pass-through businesses, including sole proprietors, partnerships and S-corporations, along with some trusts and estates. The House Republican bill would make the deduction permanent, raise the maximum tax break to 23% and make changes to the phase-outs. Nitat Termmee | Moment | Getty Images How to tell if you have qualified business income
The QBI deduction applies to so-called pass-through businesses, which report profits or losses on individual tax returns.
This includes partnerships and S-corporations, along with some trusts and estates. Sole proprietors, such as freelance, contract and gig economy workers, also qualify.
For 2025, the tax break starts to phase-out when taxable income reaches $197,300 for single filers and