Owner compensation plays a big role in how much QBI deduction a business owner can receive. In a partnership, guaranteed payments reduce QBI, while in an S corporation, W-2 wages are excluded from QBI. Understanding this difference helps business owners and CPAs plan smarter and reduce taxes legally.

The “no tax on overtime” deduction is causing confusion among millions of taxpayers in 2026. Many claims may be incorrect due to unclear rules, leading to possible IRS adjustments, delays, or future audits.