What is form 8995? Why is it saying I can't file until this form is ready?

[Critter-3]

@Chulaloca21 

YES ... when you filed the 2021 return and knew you were not going to have the Sch C business in 2022 you should have indicated the business was closed so the Sch C info would not have been carried to the 2022 program.  So you may also need to delete the Sch C as well to remove the 8995 ...

1. With your return open, search for this exact phrase: business (schedule c) (include the parentheses) and then click the "Jump to" link in the search results.
2. Answer Yes when asked if you had (or want to work on) business income and expenses for 2022.
   • That's right – you'll need to answer Yes, even though it doesn't make sense.
   • If you're being forced to upgrade to Home & Business, contact us for further assistance.
3. When you get to the Business info or Business Summary screen, click Delete next to the defunct business.
4. Answer Yes to confirm the removal of all business-related forms.

[adalovesboomer]

I don't have business income Social Security Disability way would I have to use the form Thank you Ada Marie Rodgers

[HopeS]

Unless you have entered some type of business, rental property, or a Schedule K-1 on your tax return, there is no reason for a Form 8995 to be included in your tax return

If this form does not apply to you, you can simply remove it from the program. Here are the steps: 

In TurboTax online
 

• Sign in to your account, select Pick up where you left off
• To your left, Select Tax Tools/drop-down menu
• Select Tools
• Under Other helpful links, choose to Delete a form
• Select Delete next to Form 8995  and Continue with My Return to proceed

@adallovesboomer

[b4708125]

I don't own a business 

[sallie 3]

Where do I enter line 5 and line 7 on 1099-INT ?

[Mike9241]

are you sure it isn't a 1099-div that you are misentering? all info is entered through the 1099-div on the respective lines. there should be no need for direct entry on the 1116 (and line 7 goes nowhere for foreign tax purposes). on a 1099-int line 5 is investment expenses and line 7 is foreign country. there is no 199A line on a 1099-Int

7 

[ksfjones]

Hi Hope,

Help! My mother-in-law is retired and receives money from her late husband's last employer prior to his retirement. Part is from a pension reported on a 1099-R and part is on a 1099-Misc box 3 Other Income. Maybe this is a golden parachute type of payment as he was President of the company, but we don't know. TurboTax 2022 insists on giving her a QBI deduction even after I have tried deleting the 8995 form.  After deleting it, it continues to show up on the list of forms and continues to show the QBI deduction. I don't know how to fix this and I'm afraid the IRS will flag it. Any other suggestions?

[JamesG1]

IRS form 8995 computes the Qualified Business Income Deduction.  The income which generates the form is listed on line 1 of the form.

The deduction may 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 second component could be reported on 1099-DIV 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. 

Once you know the exact income that is generating the deduction, you can address: 

• whether or not the deduction is appropriate, or
• whether the income has been reported correctly.

Was the 1099-MISC income reported on Schedule C Profit or Loss From Business?  The Schedule C could have generated IRS form 8995.

See this TurboTax Help.

@ksfjones 

[ksfjones]

Yes, TurboTax is reporting it on Schedule C. I cannot figure out another way to report the 1099-Misc than what I am doing by honestly answering the questions TurboTax is posing. I finally fooled TurboTax into not triggering the QBI deductions (as we are not entitled to it) by answering one of the questions as the funds being wages from the employer. That's not really correct as my mother-in-law is 95 but it sort of is in a round about way since it was a benefit from her husband's employment that passed to her at his death.

Is there a better way to do this in TurboTax?

[HopeS]

You should revisit the entry for Form 1099MISC and make sure you indicate this is not self-employment income. The amount should show up on Sch 1 (Other Income) and not Schedule C

Step 1.  Delete the 1099-MISC.

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 on the form you wish to open and delete.
3. Click on the Delete Form box at the bottom of the screen.
4. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.

Also, delete Form 8995

Step 2.  Reenter the 1099-MISC.

1. Click on Federal > Wages & Income.
2. Scroll down to the Other Common Income section.
3. Click on the Start/Revisit box next Form 1099-MISC.
4. On the screen Did you get a 1099-MISC? ...
5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
6. On the following screens, answer the following questions:
   • Did it involve work that's like your main job? No.
   • You got it in 2022
   • No, it didn't involve an intent to earn money

 7.  Continue through the rest of the interview screens. The income will appear as Other Income.

NOTE: Clear Cache before re-entering Form 1099MISC.

How to Clear Cache

@ksfjones

[ksfjones]

Yes! That fixed it! Thank you so much!

[MoniqueLO_]

Thank you for the update! We are glad you were able to fix it. 

@ksfjones