The income threshold for the Qualified Business Income Deduction has increased for tax year 2021. The new thresholds are:
- Married Filing Joint -$329,800
- Single, Head of Household, Qualifying Widow(er) or Trust/Estate - $164,900
- Married Filing Separate- $164,925
What form do I use?
If your income is above the threshold, or you have a 1099-PATR, the deduction will be calculated on form 8995-A. If your income is below the threshold, Form 8995 will be used.