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Who Can Take the Deduction. Individuals and eligible estates and trusts that have QBI use Form 8995 to figure the QBI deduction if: You aren’t a patron in a specified agricultural or horticultural cooperative. Otherwise, use Form 8995-A, Qualified Business Income Deduction, to figure your QBI deduction.
Form 8995 to figure the QBI deduction if: • You have QBI, qualified REIT dividends, or qualified PTP income or loss (all defined later); and • Your 2023 taxable income before your QBI deduction is less than or equal to $182,100 if single, married filing separately, head of household, qualifying surviving spouse, or are a trust or
Use this form if your taxable income, before your qualified business income deduction, is at or below $182,100 ($364,200 if married filing jointly), and you aren’t a patron of an agricultural or horticultural cooperative.
To claim the Qualified Business Income Deduction, file Form 8995 or Form 8995-1A along with your Form 1040. You can use Form 8995 if your 2023 total taxable income (before the qualified business income deduction) is less than $182,100 ($364,200 for joint filers) and you're not a patron of an agricultural or horticultural cooperative.
2023 Schedule A (Form 8995-A) Complete Schedule A only if your trade or business is a specified service trade or business (see instructions) and your taxable income is more than $182,100 but not $232,100 ($364,200 and $464,200 if married filing jointly).
Form 8995 is a newly created tax form used to calculate the Qualified Business Income Deduction (QBID). In some circumstances, form 8995-A may be used to calculate this deduction instead. How do I add this form to my return? Form 8995 and the QBID will be automatically generate and calculated based on your income entries.
You can claim the qualified business income deduction only if you have qualified business income from a qualified trade or business, real estate investment trust dividends, publicly traded partnership income, or a domestic production activities deduction passed through from an agricultural or horticultural cooperative. See instructions.