Section 199A Pass-Through Deduction: 2026 Phase-Out Thresholds
For 2026, the Section 199A deduction phase-out for specified service trades or businesses (SSTBs) begins at $197,300 for single filers and $394,600 for married filing jointly. If your qualified business income exceeds the threshold, the deduction is partially or fully disallowed. Entity structure, reasonable compensation, and W-2 wage elections can...