Tammy, a single taxpayer, owns and operates LittleCo, a sole proprietorship that is a qualified trade or business. Tammy reports $100,000 in qualified business income from LittleCo. She has no other items of income or loss and $25,000 of itemized deductions. What is her qualified business income deduction? Feedback Check My Work With the reduction in the corporate income tax rate to 21 percent in 2018, Congress needed to provide a means of reducing the taxes on businesses that operate n different business forms. Congress accomplished this with the creation of the deduction for qualifled business income ( 199A). Qualified business income (QBI) is defined as the ordinary income less ordinary deductions a taxpayer earns from a "qualified trade or business" conducted in the United States by the taxpayer