Not wanting to take the Qualified Business Income Deduction. Unable to delete form 8995

Forum|Forum|6 years ago
February 6, 2020
4 replies
51 views

I have read various threads on this topic and am a little frustrated with the Turbo Tax Software. I have an immaterial Section 199A dividend coming in from a 1099-DIV and Turbo Tax is calculating a $1 Qualified Business Income deduction. For a variety of reasons, I would prefer not to take this $1 deduction. I go into the Turbo tax software in Form mode and attempt to delete both the Form 8995 and the QBI Ded Summary but after hitting the delete button nothing happens and the forms stay. I believe this is because Turbo Tax is not allowing them to be deleted because of the 1099-DIV form showing the Section 199A dividend.

Does anyone know of a workaround to this problem as I would greatly like to not have to take this $1 QBI deduction.

JulieS

Level 15

You are correct, the Form 8995 is coming back because you have an entry in box 5 of your 1099-DIV.

If you want to fix that in forms mode, just highlight the 1099-DIV form and clear box 5. Leave it blank, don't enter a zero. Once that is gone, you will be able to delete Form 8995 and it will stay gone.

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LB641

Level 5

Have the same issue. 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.

DavidS127

Level 13

The Form 8995 is required when you are reporting QBI income somewhere on your tax return. You do not enter this deduction, it is automatically calculated by TurboTax based on your other entries. So, if you don't have a Schedule C self-employed business or Schedule E rental reporting QBI, you should be able to find 1099-DIV box 5 Section 199A dividends, or a K-1 reporting qualified real estate investment trust (REIT) dividends or qualified publicly traded partnership (PTP) income.

If you are absolutely positive you have none of these, you should delete all QBI-related forms, starting with the QBI Component worksheets, then the QBI ded summary, and then the Form 8995 if it is still there.

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