Form 8995-A, Qualified Business Income Deduction
Form 8995-A is the longer version of the QBI deduction computation, used when taxable income is above the threshold or special rules apply. Fill in the official IRS PDF below and download it.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 8995-A?
Form 8995-A, Qualified Business Income Deduction, computes the section 199A deduction for taxpayers who cannot use the simplified Form 8995, generally because taxable income exceeds the annual threshold. Above the threshold, the deduction for each business may be limited by W-2 wages paid and the unadjusted basis of qualified property, and specified service businesses phase out.
The form has separate schedules for specified service trades or businesses, aggregation of multiple businesses, loss netting and carryforwards, and patrons of agricultural cooperatives. The result flows to the QBI deduction line on Form 1040.
Who files 8995-A?
- Taxpayers with taxable income above the QBI threshold for their filing status
- Owners of specified service businesses, such as health, law, or consulting practices, in the phase-out range
- Taxpayers aggregating multiple trades or businesses for the wage and property limits
- Patrons of agricultural or horticultural cooperatives with patronage reductions
How to fill out 8995-A
- List each trade or business in Part I with its qualified business income, W-2 wages, and qualified property basis.
- Complete Schedule A if any business is a specified service trade or business subject to the phase-out.
- Apply the wage and property limitations in Part II to figure the allowed amount for each business.
- Combine the amounts, add REIT and PTP income, and apply the taxable income limitation in Parts III and IV.
- Download the finished PDF and attach it, with any schedules used, to your Form 1040.
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Frequently asked questions
What is the W-2 wage limitation?
Above the income threshold, the deduction for each business is capped at the greater of 50 percent of the W-2 wages the business paid, or 25 percent of wages plus 2.5 percent of the unadjusted basis of its qualified property. Businesses with no wages and little property can lose the deduction entirely.
What is a specified service trade or business?
Fields such as health, law, accounting, consulting, financial services, athletics, and performing arts, plus businesses relying on the reputation or skill of their owners. For these, the deduction phases out as income rises above the threshold and disappears past the phase-out range.