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? 5,000 x 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 in different business forms. Congress accomplished this with the creation of the deduction for qualified 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