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dhfishin
Returning Member

Business Income not showing on 8995-A

In 2023 my small business income showed on form 8995.  This year, it is not showing on the 8995-A (Income over the 8995 limit).  My business qualified last year as a qualified trade or business and the business has not changed. The net income from my business should be considered QBI, and should be on form 8995-A

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5 Replies
Shannon B1
Expert Alumni

Business Income not showing on 8995-A

The QBI deduction amount depends on your total taxable income, which includes wages, interest, capital gains, and other income, in addition to income from your business. If your taxable income reaches or exceeds $191,950 (or $383,900 if filing jointly), the deduction may be reduced or eliminated, depending on the nature of your business.  Here's a TurboTax Help Article that explains more on this topic.

dhfishin
Returning Member

Business Income not showing on 8995-A

How does Turbotax determine that my business is an SSTB?  The IRS general definition is "the principal asset is the reputation or skill of one or more of its employees or owners".  This is not the case for my business. Turbotax seems to think my business is an SSTB. How do I change that?

Shannon B1
Expert Alumni

Business Income not showing on 8995-A

The "work description" you provide for your business determines its business code. TurboTax automatically assigns this code based on your description, and the IRS uses it to determine your SSTB (Specified Service Trade or Business) status.

 

Here’s how to change your business "work description" in TurboTax:

  1. Open or continue your tax return.
  2. Go to the Schedule C section:
    • TurboTax Online/Mobile: Go to Schedule C.
    • TurboTax Desktop: Search for Schedule C and click the "Jump to" link.
  3. Answer any business questions until you reach the "Your self-employed work summary" screen.
  4. Select "Edit" or "Review" next to your business.
  5. On the "Here’s your business info" screen, scroll down to the "Business summary" section.
  6. Click "Edit" next to "Your business info" and change the "work description" of your business. This will automatically update the business code.
dhfishin
Returning Member

Business Income not showing on 8995-A

I changed it to a Work Description of Business Management Services, and a work industry of Office Administration. Business code shows 541510, which doesn't seem accurate, but I don't see how to change that.. Still not showing on 8995-A.  

Shannon B1
Expert Alumni

Business Income not showing on 8995-A

Here are some additional steps to help resolve this issue with your Form 8995A not populating:

 

  1. Double-Check Your Answers:
    • Go to the "qualified business income" section under Business Summary and review your answers. Use the steps provided earlier for changing your work description for guidance.
  2. Net Profit:
    • Does your business have a net profit for 2024? If not, you don't qualify for Qualified Business Income (QBI).
  3. SSTB Check:
    • Is your new "work description" still considered a Specified Service Trade or Business (SSTB)? Here is a more complete list of SSTB business types.
  4. Taxable Income:
    • If your taxable income is $191,950 or more (or $383,900 if filing jointly), the deduction may be reduced or eliminated.
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