Hi,
I've used multiple tax softwares in the past month, and after entering information for 1099-DIV, it appears that every single one of them, including TurboTax (Premier), creates an IRS Form 8995 (Qualified Business Income Deduction) with box 5 populated with a small amount for item "Qualified REIT dividends".
According to the IRS (IRS finalizes guidance for the section 199A deduction for shareholders of Regulated Investment Compa...) this appears to be the case (Instructions for Form 1099-DIV (01/2022) | Internal Revenue Service (irs.gov)). In my case, the 1099-DIV forms sent by the brokerage firms contain box "5- Section 199A dividends", accrued possibly from the REIT dividend investments of some of the underlying assets for that fiscal year.
My problem is that I do not have a business, and I'm filing my taxes as an individual. Therefore, I do not understand why this form gets generated.
My question is, can I delete this form safely from my TurboTax before filing federal taxes?
UPDATE: Reading a bit about this QBI, there might be an investment income component to it according to Facts About the Qualified Business Income Deduction | Internal Revenue Service (irs.gov), and also on this post (What is the Qualified Business Income (QBI) deduction? (intuit.com)), the author states:
For the purposes of the deduction, QBI is defined as net business income, excluding:
Income generated outside the United States (N/A)- Investment income (Applicable?)
W-2 compensation paid to an S corporation owner (N/A)Guaranteed payments to a partner (N/A)- Income from REITs, publicly traded partnerships, and qualified cooperatives (these entities may qualify for a 20% deduction under a different set of rules, the explanation of which is beyond the scope of this FAQ). (N/A?)
But I am still not sure if I am required to have this form.
