The QBI Deduction: What ABA Business Owners Need to Know

Posted 10 hours ago      Author: 3 Pie Squared Marketing Team

The QBI Deduction: What ABA Business Owners Need to Know

If you own an ABA practice, you already know how important it is to balance financial sustainability with delivering high-quality services. One area that can make a real difference to your bottom line is tax planning — and there’s some recent news worth paying attention to.

What Is the QBI Deduction?

The Section 199A qualified business income (QBI) deduction, introduced in 2018, allows eligible business owners to deduct up to 20% of their QBI from taxable income. It applies to owners of pass-through entities, including S corporations, partnerships, most LLCs,...

and sole proprietors.

QBI typically includes net business income but excludes items like investment capital gains, dividends, interest income, owner wages, and guaranteed payments to partners or LLC members.

How Income Affects QBI Eligibility

While many business owners qualify for the full 20% deduction, it is subject to income limits that phase out as taxable income rises. For 2025, the threshold is $197,300 ($394,600 if married filing jointly). Once income exceeds $247,300 ($494,600 if filing jointly), owners of certain specified service trade or businesses (SSTBs) — which includes fields like law, medicine, and consulting — lose eligibility for the deduction.

Better News for 2026 and Beyond

Recent legislation, the One Big Beautiful Bill Act (OBBBA), has extended and adjusted the QBI deduction. Not only has it been made permanent, but starting in 2026, more business owners may qualify and see higher deductions thanks to updated income ranges and a new minimum deduction of $400 for eligible taxpayers.

What This Means for ABA Business Owners

While ABA practices are not always directly classified as specified service trade or businesses, the complexities of how income, wages, and structure interact with the QBI deduction make it essential to have knowledgeable financial guidance. Maximizing deductions while staying compliant requires careful planning — something that busy ABA owners don’t always have time for.

This is where MarginKeepers , sponsor of the ABA Business Leaders Podcast, can make a big difference. Their team specializes in helping businesses like yours understand the numbers, reduce tax burdens, and plan with clarity. With the QBI deduction extended and expanded, now is the perfect time to revisit your tax strategy with experts who understand both business finance and the unique realities of ABA services.

Bottom Line

The QBI deduction remains a valuable tax-saving opportunity, and with its recent extension and improvements, ABA business owners have more reason than ever to ensure they’re making the most of it. Partnering with a firm like MarginKeepers can help you stay proactive and confident about your financial future.

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