Why is form 8995 included in return if deduction computes to zero?

[Sentinel]

Why is TT including form 8995 (QBI Ded) if the computation results in an amount of $0?  Is TT including the form unnecessarily in such an instance, or is form 8995 always supposed to be included if any 'QBI income' was received, no matter how small?

Thanks.

[JamesG1 · Accepted solution]

IRS Form 8995 Qualified Business Income Deduction Simplified Computation will be included in the tax return if the tax return contains income that could qualify for a qualified business income deduction.  The income source will be listed on line 1.

REIT dividends could qualify the tax return for a QBI deduction but a very small dollar amount may round the deduction to less than $1.

There also may be QBI carryover losses from previous years that reduce a QBI deduction for the current year to $0. 

Qualified REIT dividends include any dividends you received from a REIT held for more than 45 days and for which the payment isn’t obligated to someone else and that isn’t a capital gain dividend or qualified dividend, plus your qualified REIT dividends received from a regulated investment company (RIC). This amount could be reported on a Schedule K-1 or on IRS Form 1099-DIV, line 5.

[Edited 03/27/2022 8:04 AM PST]

@Sentinel 

[Sentinel]

@JamesG1  Thanks, excellent explanation.