Maximize the Qualified Business Income Deduction

Another expert tax tip for the end of 2024 is to consider maximizing your qualified business income deduction. A qualified business income (QBI) deduction allows taxpayers that receive income from pass-through entities to deduct up to 20% of their qualified business income when they file their annual tax returns. This deduction is available regardless of whether you itemize or take the standard deduction. Here is who will qualify for 2024:

• Single filers: $170,050

• Joint Filers: $340,100

If your taxable income exceeds these figures, then the QBI may be limited depending on several factors, including the nature of your business.