Once you aggregate your businesses for QBI purposes, you must continue to do so on future returns. Did you aggregate last year? If you did not, you are not required to do it this year, see the explanatory link at the bottom. However, if you aggregated last year for QBI purposes, you must continue to do so in future years.
If you indicate in TurboTax that your business is aggregated with your other businesses, we'll ask you to enter:
- A description of the combined businesses and the IRS rules that allow these businesses to be combined for QBI purposes; and
- An explanation of what changed from last year, if the businesses that make up the aggregation are different from last year. You can indicate that there were no changes if that is the case.
TurboTax will report the QBI deduction for your combined businesses on Form 8995-A (Deduction for Qualified Business Income) with Schedule B (Aggregation of Business Operations). At lower income levels, there is no reason to aggregate.
Business Aggregation for QBI