May 20th 2025.
Hey there! Are you looking for an easy way to estimate your Section 199A deduction using the new formula from the Big Beautiful Tax Bill of 2025? Well, look no further! Our handy calculator below will help you do just that.
First, let's gather some information. You'll need to know your deduction percentage, single and married filer thresholds, filing status, taxable income, and details about your qualified business income, W-2 wages, and unadjusted basis. Don't worry, we'll walk you through it.
Once you have all your inputs, click on the "Calculate" button and voila! Our calculator will give you the following outputs: non-specified-service-trade-or-business Section 199A deduction, "all trades or businesses" Section 199A deduction, the greater of "non-SSTBs" or "all trades or businesses," and your actual Section 199A deduction.
Now, let's talk about how to use this calculator. Here are a few simple steps to follow:
1. Replace the rough estimates of the thresholds for phasing in the Section 199A limitations with more accurate numbers, if you have them. The current estimates are $200,000 for single filers and $400,000 for married filers.
2. Indicate your filing status by entering an M or an S in the Filing Status box.
3. Enter your taxable income in the designated box.
4. Describe your non-specified-service-trade-or-business qualified business income, W-2 wages, and unadjusted basis in their respective boxes. Please note that if you have aggregated your non-SSTB businesses, the calculator will work accurately. However, if you have multiple, un-aggregated businesses, the results may not be as accurate. We apologize for any inconvenience.
5. Lastly, provide your total specified-service-trade-or-business income. You can add all your SSTBs into a single number.
6. Click on the "Calculate" button and see your results!
Bonus tip: For more information on how the new Section 199A formula works, check out our blog post: "The New Big Beautiful Section 199A Deduction."
One last thing to keep in mind is that even if the Big Beautiful Tax Bill passes Congress, it will take some time for the Treasury to issue updated regulations. So, consider the numbers from our calculator as rough estimates.
We hope this calculator makes it easier for you to estimate your Section 199A deduction. Happy calculating!
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]