Fix 2026 QBID minimum to use active-business QBI - #9194
Open
saisharan0103 wants to merge 1 commit into
Open
Conversation
…minimum to all QBI, not active-business QBI Closes PolicyEngine#9150
This file contains hidden or bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
Sign up for free
to join this conversation on GitHub.
Already have an account?
Sign in to comment
1 participant
Add this suggestion to a batch that can be applied as a single commit.This suggestion is invalid because no changes were made to the code.Suggestions cannot be applied while the pull request is closed.Suggestions cannot be applied while viewing a subset of changes.Only one suggestion per line can be applied in a batch.Add this suggestion to a batch that can be applied as a single commit.Applying suggestions on deleted lines is not supported.You must change the existing code in this line in order to create a valid suggestion.Outdated suggestions cannot be applied.This suggestion has been applied or marked resolved.Suggestions cannot be applied from pending reviews.Suggestions cannot be applied on multi-line comments.Suggestions cannot be applied while the pull request is queued to merge.Suggestion cannot be applied right now. Please check back later.
Issue #9150 reports that the 2026 §199A(i) $400 minimum can apply based on ordinary QBI inputs even when there is no modeled active qualified trade or business income.
Root cause:
qualified_business_income_deductionused the tax-unit sum ofqualified_business_incomeplussstb_qualified_business_incomeas the threshold base for the 2026 floor. Those are ordinary §199A deduction inputs and can be supplied directly, allowing the new minimum to override an otherwise zero wage/UBIA-limited deduction.This changes the floor threshold to use a narrow Person-level
active_qualified_business_incomeinput documented as aggregate QBI from active qualified trades or businesses. The ordinary QBID computation and taxable-income cap are left unchanged.Tests update the existing 2026 floor cases to provide
active_qualified_business_incomewhen the minimum is intended to apply, and add the reported above-phaseout zero wage/UBIA scenario showing ordinary QBI alone does not trigger the floor.