Anybody else here who had Form 8995 erroneously attached to their Federal return and cannot delete it?

[DavidS127]

If you don't qualify for the "rental safe harbor", take a look at the Schedule E Wks for the rentals.  

In Forms mode (icon at top right in blue bar), look in the left column to find the Schedule E Wks form for each rental property.  When you click on it the form will open up in the window.

Once you are in the Schedule E Wks, scroll down just past line 22 to find the Qualified Business Income Deduction Smart Worksheet.

Check question A to see if the "Is this activity a qualified trade or business" question is answered Yes or No.  You want it to say No, so make sure that is selected.  Next, see if the box is checked  for  "This rental qualifies as a business under the safe harbor requirements of Notice 2019-07".  You do not want it to be checked.

While you are in that section, also notice under that same question A which QBI Component sheet is linked to that Schedule E wks.  It may help to delete any existing QBI Component worksheets, especially if they are aggregated (i.e., both Schedule E wks forms use the same QBI Component worksheet).

After doing this for both rental properties, your issue should be resolved, unless there is something else in the tax return generating QBI, such as a box 5 Section 199A dividend on a Form 1099-DIV.  You can check for this in the QBI Ded Summary form while in Forms mode.

@Donna44

[LB641]

Many are asking why TT is generating this form. If we delete the form, TT adds it back. Is this a form that the IRS insists on having with our taxes? If so, why. If not, why is TT adding it, and adding it back when deleted. I have zeros, so not sure why the form is there. I too found that where the zeros have to be deleted from the worksheets, then delete the form, and then it might stay deleted. TT seems fairly insistent on including this form. Does the IRS expect it? Even with a zero, the form generates.

[KrisD15]

That form is required if you report any business income, including dividends. 

IRS Form 8995-A

[LB641]

Interesting;  As for 8995 and 8995-A (not sure what is the difference), but it seems to indicate for Qualified Business Income Deductions.  Not all are businesses, and many are getting this form having no business. Not everything is a Qualified business, nor are all "claiming" or want a business deduction. But the form is being attached/generated, and getting rid of it is not easy. Seems like even a zero generates the form. A blank is required, not a zero to get rid of the form. So is this a form the IRS wants to see on everyone's taxes?

[DaveF1006]

No this is not a form IRS likes to see on everyone's taxes because it does lower taxable income if you qualify for the deduction. IRS would prefer if you pay more tax than less. If leaving this blank gets rid of the form, by all means leave the entry blank rather than putting a zero into the form just so you can move past this in your return.

[Cece7]

How do I get rid of the Qualified Business Deduction.  I am not qualified.  Should I just start a new Tax Return.  I have Turbo Premier.

[brad92103]

I had REIT/PTP income recorded in Box 5 of my 1099-DIV for a common mutual fund holding.  Some mutual funds, such as a Stock Index Fund, do have some percentage of holdings that generate this 199A income. You would probably have to call financial institution to get this information. Take a look at Community answer https://ttlc.intuit.com/community/taxes/discussion/i-clicked-on-199a-now-i-cant-get-it-off-my-taxes-...  which led me to conclusion that I am eligible to claim QBI Deduction for 20% of this 199A mutual fund dividend income, and this does NOT require me to have a QBI business (actually I do, but that is besides the point). My QBI deduction for dividends is $1 but I do have other qualifying QBI. I would say just go with it if you're pressed to get your return filed, and if you're not sure, buy TurboTax Audit Defense and if IRS ever calls you out on this (and I imagine it would have to be a big deduction relative to your income) defer to TurboTax . Or if you don't trust TT-generated return then jump through the hoops to delete it. I suspect if you downloaded your 1099-DIV financial info, you are going to have to go into the Sch B or related form wks and delete the 199A amount shown in Box 5 so that TT does not automatically re-create form 8995A. I hate things like this discovered late in the game, that TT does automatically and does not provide sufficient explanation, but I hate even more things TT doesn't do that absolutely it should check (e.g. it doesn't check royalty depletion as percentage of income figured without depletion). My answer is based on what I have concluded from about half-hour of research.

[DavidS127]

The Section 199A dividend in box 5 of your 1099-DIV is eligible for the Qualified Business Income Deduction.

@brad92103

[squartucci]

Delete the "qualified business inc deduction summary form"

[lotts82]

None of these suggestions work.  I am using the online version, rather than a desktop version.  We do not want to file an 8995.  This has apparently been triggered by my entering a form 1099-NEC, which triggers a form 1040 Schedule C.  I have followed all instructions to delete the 8995 form, as well as the Qualified Business Income Component wkst and the Qualified Business Inc Deduction Summary.  The webpage says "Form Successfully Deleted" when I click on "Delete this form" for any of those three forms. But then they are NOT deleted from the list and are still there when I go back to the list where it shows all my forms.  So what now?  Am I just totally stuck and can't file (having already paid TurboTax to file)?  Is this an un-fixable error, or will it resolve after I wait for the IRS to approve a form that I do not want, and do not even need?  This is for a very small amount of side income from a 1099-NEC.

[JamesG1]

I suspect that the Qualified Business Income Deduction (QBID) will be generated by the entry of the 1099-NEC / Schedule C income and cannot be overridden. 

When you delete the form, the form 8995 goes away and then is immediately re-generated because the 1099-NEC / Schedule C income is still there.

Only by excluding the income, can the Qualified Business Income Deduction be removed.

The Qualified Business Income Deduction can be generated from one of two components.

•  The QBI component can result from a sole proprietorship, partnership, S corporation, trust or estate.  The first component would likely be reported on Schedule C, Schedule E, Schedule F or a K-1.
• The REIT / PTP component can be generated from qualified real estate investment trust (REIT) dividends or qualified publicly traded partnership (PTP) income.  The second component could be reported on 1099-DIV or a K-1. 

See this TurboTax Help.

[lotts82]

Ah!  Thank you!  Your post helped me figure out where I had gone wrong.  Under Self-Employment Income, I had seen 1099-NEC and figured that was the right (and the only) place to enter this income that I must report.  But I neglected somehow to see that 1099-NEC is also listed down under "Other Income."  Once I entered my 1099 in the right place, the problem was resolved. 

[JamesG1]

This TurboTax Help states:

Whether you are a sole proprietor, an independent contractor, a consultant or a freelancer, you are probably getting some or all of your income reported on a 1099-NEC, 1099-MISC or 1099-K. 

The IRS may presume that 1099-NEC box 1 income is self-employment income subject to self-employment tax and the Qualified Business Income Deduction (QBID).

[hornickk]

I had this issue and after escalating the issue to a Turbo Tax Expert, my issue was resolved.  On the left pane, there go to Tax Tools---Tools---Delete a Form---Qualified Business Deduction and choose "Delete." If necessary, you also may need to delete the form above it "Form 8995."

[Shannonhope3]

I have deleted the form 8995 & it still will not take it off. It will not allow me to file. I have to wait until February 12th. I do not even need this form!