How is the amount on line 1 of my 8995 (Qualified Business Income Deduction) calculated?

When figuring the amount of income eligible for the QBID you need to also take into account other Self Employment related deductions that you are taking on your Federal return. 

The amount of Qualified Business Income on your 8995 is your Profit minus:

• 1/2 SE tax deduction
• Guaranteed payments
• Your deduction for SE Health Insurance
• Your SE deduction for contributions to SEP, Simple, or Qualified Retirement Plan.

Other less common items that can also impact the QBI is: 

• Charitable contributions allowed (K-1)
• Unreimbursed Partnership Expenses allowed (K-1)
• Section 179 allowed
  • The program does not account for this automatically. Instead, the customer will need to adjust their income on the K-1 form. 
    • K-1 1065 - Line 20Z needs to be manually adjusted to account for any 179 deduction allowed. 
    • K-1 1120-S- Line 17V needs to be manually adjusted to account for any 179 deduction allowed. 

This information can be found in "Determining your Qualified Business Income" in the 8995 Instructions.