While reviewing my 1040 (not yet printed) I noticed that there is an amount on Line 13, labeled as business income deduction coming from From 8995. Since I am yet to print my forms I am trying to understand where is it pulling this number from? Should it be related to the deductions claimed under my self-employment work or somewhere else? That particular number on Line 13 isn't showing up anywhere else in my income or deductions, so, it might be a combination of different numbers from different parts of my 1040. Can you help me understand the source of this number?
Line 13 of your 1040 represents the Qualified Business Income Deduction.
The deduction allows eligible taxpayers to deduct up to 20 percent of their qualified business income (QBI), plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income.
Income earned through a C corporation or by providing services as an employee is not eligible for the deduction.
For more information on what qualifies as a trade or business.
Form 8995 "Qualified Business Income Deduction" is used to calculate this number.
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