Qualified Business Income Deduction - Sec. 199A

The Qualified Business Income deduction or QBI deduction, allows most self-employed individuals and small business owners to exclude up to 20% of their business income from federal income tax. If you're self-employed, a sole proprietor, or an owner of an LLC, partnership or S corporation, you could be eligible. Generally if your taxable income is below $157,500 ($315,000 if filing jointly), you get the full 20% deduction and you don't need to itemize to receive it.

Income from outside of the United States, investment income or wage income, are just some of the items that are not eligible for the deduction.