With 20% Qualified Business Income Deduction Gone, LegalMatch Connects Pass-Through Entities to Tax Attorneys for Urgent 2026 Strategy

RENO, NV / ACCESS Newswire / January 7, 2026 / One of America's most important tax breaks regarding millions of small businesses is the 20% Qualified Business Income (QBI) deduction (Section 199A), which expired at the end of 2025. LegalMatch.com, the USA's leading attorney-client matching service, is issuing an alert concerning all S-corporations, partnerships and sole proprietorships of the significant effects this will have on their 2026 taxes. This key provision of the 2017 Tax Cuts and Jobs Act (TCJA) sunsetted on December 31, 2025, fundamentally altering the operational tax landscape for the vast majority of U.S. small businesses.

The QBI deduction was perhaps the largest, single deduction available to small businesses that qualified for it. This means that the expiration of the QBI deduction will likely mean an immediate increase in net tax liability for many small businesses (beginning January 1, 2026). Such changes will require thorough legal and tax planning.

"The sunset of the QBI deduction is not a future concern; it's a present reality that began on January 1st, 2026, and will directly impact every eligible small business's profitability this year. This is a fundamental shift in tax law requiring immediate legal strategy. Business owners must analyze their entity structure, income streams, and long-term financial goals now, with expert legal counsel, to understand and mitigate these increased tax burdens and protect their bottom line," says Ken LaMance, LegalMatch's General Counsel.

It's more than just the higher tax bill for this year. Key areas of concern include, but are not limited to, the following:

- Increased Tax Liability: Understanding the direct financial consequences of losing a 20% deduction on qualified business income for the 2026 tax year.
- Business Structure Optimization: Determining whether their business structure (S-Corp, C-Corp, etc.) is optimal under the new post-QBI tax law.
- Financial Planning: How businesses respond in order to capture income, reduce costs, and generally operate given the changed tax landscape.

LegalMatch.com emphasizes that, to adjust to these sudden and multidimensional changes, the expertise of a tax attorney and a business attorney can help small business owners navigate the complexities of the expiration of the QBI deduction and its immediate impact on the taxes for the business and individual in tax year 2026 and beyond.

For business owners and individuals who are concerned about 2026 tax changes and the various intricacies, expert attorney review is strongly recommended. LegalMatch.com has a confidential platform where users can submit case details, receive free matches with attorneys experienced in tax law and business law, and contact the attorney of choice to help adjust and adapt to the QBI deduction sunset.

About LegalMatch.com

LegalMatch is the nation's oldest and largest online legal lead-generation service. Headquartered in Reno, Nevada, LegalMatch helps people find the right lawyer and helps attorneys find new clients. LegalMatch's service is free to individuals and small businesses looking for legal help. For more information about LegalMatch, please visit our website or contact us directly.

Media Contact
Ken LaMance
press@legalmatch.com
(415) 946-0856

SOURCE: LegalMatch.com