Form 8995

You most likely do not need to amend your 2024 return. This is a common scenario and if you do not own a business, Form 8995 was almost certainly triggered by one of the following three common investment scenarios:

1099-Div Form

• If you own mutual funds, exchange-traded funds (ETFs), or individual stocks in a standard brokerage account, you likely received a Form 1099-DIV.
• Many funds invest a portion of their portfolio in Real Estate Investment Trusts (REITs).
• The IRS classifies REIT dividends as "Section 199A dividends."
• These dividends are reported in Box 5 of your 1099-DIV and automatically qualify for the 20% QBI deduction, completely independent of whether you own a business.

Schedule K-1 Investment

• If you are a partner, shareholder, or beneficiary in a Partnership, S-Corporation, Estate, or Trust, you receive a Schedule K-1 at tax time. Even if you do not actively participate in the business, the entity passes its income (and the associated QBI deduction) directly to your personal tax return.

Rental Property

• If you own rental property and claim income and expenses on Schedule E, the IRS often allows this activity to qualify as a "trade or business" for the purposes of this specific deduction.

You can quickly solve this mystery by looking directly at your printed or downloaded 2024 Form 8995:

1. Look at Line 2: If there is a dollar amount here (labeled REIT dividends and PTP income), the form was generated by your investment portfolio (your 1099-DIVs). This is entirely normal and correct.
2. Look at Line 1: If there is a business name or description listed here, check the name. It will usually be the name of the Partnership/S-Corp from a K-1, or the address of your rental property.

As long as the income listed on the form ties back to your investment documents, there is no error, and amending is not necessary, you simply received a beneficial tax break on your investments.