How do I complete Form 8995?

Form 8995 is used to calculate the Qualified Business Income Deduction (QBI Deduction or QBID). This deduction may allow eligible taxpayers to deduct up to 20% of their qualified business income from certain pass-through businesses.

For tax year 2026 returns filed in 2027, Form 8995 is used by many taxpayers who qualify for the deduction. In more complex situations, Form 8995-A may be required instead.

Do I Need to Add Form 8995 to My Return?

No. You do not need to manually add Form 8995 to your return.

The program automatically determines whether you qualify for the Qualified Business Income Deduction based on the income and business information entered on your return. If you're eligible, Form 8995 or Form 8995-A will be generated automatically and included with your return.

As long as all qualifying income has been entered correctly, the software will calculate the deduction for you.

What Types of Income Qualify for the Qualified Business Income Deduction?

The Qualified Business Income Deduction generally applies to income from eligible domestic pass-through businesses. Common sources of qualifying income include:
  • Sole proprietorship income reported on Schedule C
  • Farm income reported on Schedule F
  • Certain rental real estate activities reported on Schedule E (if the activity qualifies)
  • Income reported on Schedule K-1 from partnerships, S corporations, trusts, or estates
In addition to business income, you may also qualify for a deduction based on:
  • Qualified Real Estate Investment Trust (REIT) dividends
  • Qualified Publicly Traded Partnership (PTP) income
This information is commonly reported on Form 1099-DIV or Schedule K-1.

Who Is Eligible for the QBI Deduction?

Eligibility depends on several factors, including:
  • The type of business activity
  • The amount of qualified business income
  • Your taxable income
  • Whether the business is considered a specified service trade or business (SSTB)
  • Wages paid and business property limitations that may apply at higher income levels
Because the rules can become complex, the software automatically applies the appropriate calculations based on the information entered on your return.

How Can I View Form 8995?

To review the automatically generated Form 8995:
  1. Select Review/Summary from the sidebar menu.
  2. View Return or Print (or Show Details to provide payment information to gain access to return PDF)
  3. Review Form 8995 or Form 8995-A, if included.
The form will show the calculation used to determine your Qualified Business Income Deduction.

What If Form 8995 Isn't Included in My Return?

If Form 8995 does not appear in your return, it may be because:
  • You do not have qualifying business income.
  • Your business activity does not qualify for the deduction.
  • Your taxable income limitations reduced or eliminated the deduction.
  • Required business information has not yet been entered.
Review all Schedule C, Schedule F, Schedule E, K-1, and dividend entries to ensure they have been entered correctly.

Additional Information

For more information about the Qualified Business Income Deduction and Form 8995, please review the IRS article here and Form 8995 instructions.

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