How the Qualified Business Income Deduction Works in 2026

Episode 22 of The Tax Strategy Podcast breaks down the Qualified Business Income (QBI) deduction under Section 199A, focusing on how it applies to freelancers and small business owners in 2026. Lucas and Luna walk through a concrete example: a freelance graphic designer earning $180,000 per year with $40,000 in qualified business income from a side LLC. They explain the 20% deduction, the phaseout thresholds for specified service trades or businesses, and how a solo 401k contribution can lower taxable income to stay under the limit. They also discuss the TCJA sunset provisions and what changes are expected at the end of 2026. This episode includes a brief, organic listener-support segment. No prior tax knowledge required. Specific, actionable, and timely. #QBI #Section199A #PassThroughDeduction #SmallBusinessTax #FreelancerTaxes #Solo401k #TCJASunset #TaxPlanning2026 #BusinessPodcast #Finance #TaxStrategy #FexingoBusiness #PodcastEpisode22 #LucasAndLuna #SelfEmployed #SpecifiedServiceTrade #PhaseoutThresholds #TaxDeduction Keep every episode free: buymeacoffee.com/fexingo