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

[MarilynG1]

@Shannonhope3  If you have tried to Delete Form 8995 and it re-appears, there is something in your return generating the Form.

Do you have a Schedule C or Schedule E in your return?  Interest or Dividends? 

The Qualified Business Income (QBI) is a deduction for you, which is good, so you may want to wait for the form and claim the deduction.

Click this link for more info on the Qualified Business Income (QBI) Deduction that may help you figure out why you have it in your return. 

[Shannonhope3]

I spent almost 2 hours on the phone with TurboTax & that lady couldn’t even figure it out. 

[hornickk]

I had this issue and after escalating the issue to a Turbo Tax Expert, my issue was resolved.  It doesn't work to just delete the Form 8995. On the left pane, there go to Tax Tools---Tools---Delete a Form  A list of all the forms that are in your taxes. Scroll down the list and find Qualified Business Deduction and choose "Delete." Apparently this form is connected to thrb8995 so even if you delete it, it will reappear because that form is still generated. Once you delete it, it should remove the 8995, too, buy if necessary, you also may need to delete the form above it "Form 8995."

[JamesG1]

I suspect that the Qualified Business Income Deduction (QBID) and IRS form 8995 is generated by the entry of some form of self-employment income and cannot be overridden. 

When you delete the form, the form 8995 goes away and then is immediately re-generated because the self-employment income is still reported in the tax software.

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 also this TurboTax Help.

[Username5]

Mine is reported on a Mutual Fund 1099Div for Box 5, Section 199A dividend.

[JamesG1]

The Qualified Business Income Deduction (QBID) will be generated by the entry of the 1099-Div Section 199A dividend and cannot be overridden. 

If you delete form 8995, the form 8995 goes away and then is immediately re-generated because the 1099-Div Section 199A dividend 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.

[Gringo10]

I have H&B TT and imported my tax from last year into Taxes for 2020. For some reason TT has generated  form 8995 and don't understand why it has allocated taxable income on line 11 and Net Cap gain on 12 which is not from business activity. Line 5 has REIT dividend Amt and the same amount is reported on line 6 & line 8. 

If I were to delete the Reit Amt in line 5, 6 & 8, will this cause any problems with my tax returns and will this also remove Riet Dividend from line 9 & 10 on QBI Ded Summary From and correctly report taxable income and net gains appropriate personal form vs. QBI Business form? Help as this is not clear and TT support has not been helpful in resolving the issue.  Thank  

[Irene2805]

TurboTax is populating Form 8995 correctly.  The instructions for the form don't distinguish between capital gain from a business activity and that reported in other places in the return.  The IRS Instructions for Form 8995 state the following:

Line 11

Enter your taxable income figured before any QBI deduction, computed as follows. • Form 1040, 1040-SR, or 1040-NR filers: Form 1040, 1040-SR, or 1040-NR, line 11, minus Form 1040, 1040-SR, or 1040-NR, line 12.

Line 12

Enter the amount from your tax return as follows. • Form 1040, 1040-SR, or 1040-NR, line 3a, plus your net capital gain.  If you’re not required to file Schedule D (Form 1040), your net capital gain is the amount reported on Form 1040, 1040-SR, or 1040-NR, line 7. If you file Schedule D (Form 1040), your net capital gain is the smaller of Schedule D (Form 1040), line 15 or 16, unless line 15 or 16 is zero or less, in which case nothing is added to the qualified dividends.

Dividends from a Real Estate Investment Trust (REIT), qualify for a Section 199A deduction. They are not considered to be QBI itself, but are included with QBI for the Section 199A deduction (even if you have no separate business).

If you wish to remove the REIT dividends from the QBI calculation on Form 8995, you can do so in Forms Mode (if you are using TurboTax CD/Download version).  Please follow these steps:

1. Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar. 
2. In the Forms in My Return list on the left, click Form 8995.  The form will appear on the right side of the screen.
3. Below line 5, you will see the Qualified REIT dividend and PTP income Smart Worksheet.  [See screenshot, below.]
4. Right-click on the figure entered for Qualified REIT dividends and select Override from the menu.
5. You can now delete the number that appears.  [DON'T enter a zero.]
6. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.  

If you wish to delete the entire form, just click the Delete box at the bottom of the form.

@Gringo10

[Gringo10]

Hi Amy, I Followed the recommendation to delete Form 8995 and QBI data summery form as it erroneously attached to Fed and State taxes. Every time I deleted it. It reappeared.

I don't know or understand why H&B TT is reporting REIT dividends, taxable income and Net Capital gain which were NOT earned thru business is being reported into qualified business forms i.e forms 8995 and QBI. 

Could shed some light on this and suggest what is the best option. 

Note: I also tried to started a new tax report without transferring pervious year tax data. But I have the same results, i.e   Form 8995 and QBI data summery form are erroneously  being attached to the tax report and can't be deleted.  hmm help

[JamesG1]

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 publically traded partnership (PTP) income.  The second component could be reported on 1099-DIV or a K-1.

The IRS intends for the REIT / PTP component to be reported on IRS Form 8995.  This IRS Publication states:

REIT/PTP Component.

This component of the deduction equals 20% of the combined qualified REIT dividends (including REIT dividends earned through a regulated investment company (RIC)) and qualified PTP income/(loss). This component is not limited by W-2 wages or the UBIA of qualified property. Depending on the taxpayer's income, the amount of PTP income that qualifies may be limited depending on the type of business engaged in by the PTP.

[earsm007]

This did not work for me.  

[earsm007]

The form regenerates when I try to finalize my return. 

[JamesG1]

IRS Form 8995 is generated from one of the components listed above or from a carryforward from a previous year.  Was this form reported last year?  Are you able to view the form here?

• In the left hand-menu, select Tax Tools.
• Select Print Center.
• Then choose Print, save or preview this year’s return.
• Now check the 2020 federal returns (or 2020 state returns) box and choose which forms to print out or all worksheets.
• Select View forms.

What QB income is reported?  Is a carryforward reported?  Please clarify. 

[jeannenem]

I can not follow the instructions on deleting form 8995 as I don't have a left menu.  Where else could the Tax Tools be?  They are not in any of the pull down options from the brown tool bar on the top.  I don't have a tool bar on the left.

[JohnW152]

To delete Form 8995 in TurboTax Online when you don’t see a left pane, open your return in TurboTax and:

1. If you’re on the Hi TurboTax Client, let's keep working on your taxes! screen, with Personal Info, Income & Expenses, etc. beneath, and none of those are open, click the dropdown next to any of the categories, then click the Review/Edit or Pick up where you left off button.  That should generate the pane you need.

2. In the left pane, select Tax Tools

3. Then, under that, select Tools

4. In the Tool Center pop-up, select Delete a form

5. If Form 8995 is in the list, select Delete next to Form 8995 in the list and follow the onscreen instructions

If this doesn’t work, please indicate which version of TurboTax you’re working in.

@jeannenem