What It Means for WNY Business Owners
Helping Western New York Entrepreneurs Keep More of What They Earn
If you own a small business in Western New York—whether it’s a sole proprietorship, partnership, LLC, or S corporation—there’s great news this tax season. The Qualified Business Income (QBI) deduction, one of the most valuable tax breaks for small business owners, has been made permanent.
What Is the QBI Deduction?
The Qualified Business Income (QBI) deduction allows eligible taxpayers to deduct up to 20% of their qualified business income from pass-through entities such as partnerships, S corporations, sole proprietorships, and LLCs not treated as C corporations.
Pass-through entities don’t pay income tax at the corporate level. Instead, profits “pass through” to the owners, who pay taxes at the individual level. The QBI deduction helps reduce that taxable income—making it easier to reinvest in your business, your employees, and your future.
What’s New for 2025 and Beyond
Previously set to expire in 2025, the QBI deduction is now a permanent part of the tax code—giving business owners long-term stability and peace of mind.
There’s also a new minimum deduction of $400 for taxpayers with at least $1,000 in qualified business income (QBI), ensuring even small-scale entrepreneurs benefit.
Who Qualifies
You may qualify if you receive business income from a pass-through entity. The deduction is available to those who itemize or take the standard deduction, making it widely accessible to WNY taxpayers.
However, the deduction may be limited for higher-income individuals or for those in a Specified Service Trade or Business (SSTB)—such as healthcare, law, accounting, financial services, or consulting—where income thresholds determine eligibility.
Income Thresholds
Single Filers: Deduction begins to phase out at $157,500 in taxable income
Married Filing Jointly: Phase-out begins at $315,000
Full Phase-Out: Above $207,500 (single) or $415,000 (joint)
What’s Not Eligible
Employee wages and guaranteed payments to partners or LLC members don’t qualify for the deduction. You also can’t simply form an LLC to convert wages into eligible business income.
Why It Matters for WNY Businesses
From Jamestown to Dunkirk, Fredonia to Lakewood, and throughout Chautauqua County, small businesses are the backbone of our local economy. This permanent QBI deduction means long-term savings, more predictable planning, and the ability to keep more of your hard-earned income right here in Western New York.
Plan Ahead with Gleason Tax Advisory
Tax planning isn’t just about compliance—it’s about strategy. At Gleason Tax Advisory, we help WNY business owners understand how new tax laws affect them and how to maximize every available deduction.
If you operate a pass-through business, come talk to us about how to take full advantage of the permanent QBI deduction and whether you should adjust your estimated taxes to put more money back in your pocket throughout the year.
Need Help? Let’s Talk.
📍 Serving Western New York | Jamestown | Lakewood | Chautauqua
Contact Gleason Tax Advisory today to schedule your tax planning consultation.
