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Level 2
February 13, 2020
Solved

Why do I need Form 8995-A?

  • February 13, 2020
  • 9 replies
  • 173 views

Greetings.  TurboTax is telling me that I need to wait for form 8995A in order to complete my return and file.  However, I do not have a business of any sort.  Why would I need form 8995?  Thank you.

Best answer by lkglkg

this reply was more helpful than the initial entry, about minor mutual fund REIT.  thanks!

9 replies

Level 15
February 13, 2020

Did you receive a K-1 from a partnership or S-Corporation?  That could also trigger the Qualified Business Income (QBI) Credit (Form 8995A).

 

If not, see if the form appears in your list of forms and delete it.  To do this, please follow these steps:

 

TurboTax Online

  1. While in your return, click on Tax Tools > Tools (in the black bar at the side of your screen).  
  2. In the Tools Center, under Other helpful links click on Delete a form.
  3. Click Delete next to the form you want to delete and follow the onscreen instructions. 
  4. Once you have finished deleting the desired form(s) click the Continue with My Return box (in the lower right of your screen).

TurboTax CD/Download

  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.  

 

 

Level 2
February 15, 2020

I had the same issue.  Thanks for the advice however Turbotax just keeps adding the form back.  It looks like I have a small amount of income from a mutual fund that is giving me a $2 deduction that is being reported on this form.  I guess I will wait for the form.   Good to know how to look at Forms view.  Been ages since I have looked at the forms view and forgot it existed.

lkglkgAnswer
Level 2
February 17, 2020

this reply was more helpful than the initial entry, about minor mutual fund REIT.  thanks!

Level 4
February 17, 2020

See also this question, which has many people commenting (but no real solution...).

LeonardS
Level 14
February 17, 2020

You will "...Use Form 8995-A to figure your qualified business income (QBI) deduction. Include the following schedules (their specific instructions are shown later), as appropriate:

  • Schedule A (Form 8995-A), Specified Service Trades or Businesses (SSTB);

  • Schedule B (Form 8995-A), Aggregation of Business Operations;

  • Schedule C (Form 8995-A), Loss Netting and Carryforward;

  • Schedule D (Form 8995-A), Special Rules for Patrons of Agricultural or Horticultural Cooperatives..." Ref IRS Instructions for Form 8995-A (2019)Instructions for Form 8995-A

 

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Level 2
February 20, 2020

I'm using Turbotax CD version and I accidentally created an aggregated business (Form 8995 Schedule B) and now I can't delete it.  How can I go back and say I don't want to aggregate so that I can get rid of the form?

Level 2
February 18, 2020

Same issue with TurboTax adding the form back in.  I apparently have a $20 deduction from a REIT in a stock fund.  I'll just wait for the online form to publish.  Thanks for the help.

Level 3
February 19, 2020

I'm preparing to file taxes for my deceased mother and when reviewing the forms for filing before I hit send, Form 8995 popped up and produced a WTF moment.  At least I can file since I can use the "Simplified Computation", but having this form titled Qualified Business Income Deduction when she clearly never had a business of any kind is beyond misleading for mutual fund dividends and capital gains.  And the net result is zero anyway.  What a waste.

Level 2
March 6, 2020

I'm having the same trouble trying to disaggregate the combined businesses and eliminate schedule B. You spoke of the 1099, how did that solve your problem?

LeonardS
Level 14
March 6, 2020

Forms  8995-A is used to calculate your Qualified Business Income Deduction QBID.

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Level 5
March 7, 2020

I was having a problem with this on my daughter's return. She's a 23-year-old grad student, does not own a business or have business/self-employment income, no 1099-MISCs, does not have interest/dividend/investment income of any kind (because she has no investments and her bank account does not pay interest) so no 1099-DIVs/INTs, no carryforwards, etc. etc. Absolutely nothing on the 8995 was applicable, period. All the fields TT insisted on populating were 0.  Yet every time I told TT to delete the form, it was immediately re-created, and was being included among the forms needed for filing her federal return despite all those 0s .

 

Eventually I tracked it down to some "QBI worksheet" that TT was referring to, which had no entries at all AFAICT. When I told TT to delete that worksheet, the bogus 8995 disappeared as well. This seems like a bug to me. If the worksheet is empty, the form should not even be generated, let alone included for filing.

Level 5
March 22, 2020

Have the same issue. Many are asking why TT is generating this form. If we delete the form, TT adds it back. Is this a form that the IRS insists on having with our taxes? If so, why. If not, why is TT adding it, and adding it back when deleted. I have zeros, so not sure why the form is there. I too found that where the zeros have to be deleted from the worksheets, then delete the form, and then it might stay deleted. TT seems fairly insistent on including this form. Does the IRS expect it? Even with a zero, the form generates.

KrisD15
Level 15
March 22, 2020

Form 8995-A calculates your Qualified Business Income Deduction. 

If you report any business income, including dividends, the form is needed. 

 

IRS link to Form 8995-A

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Level 2
May 1, 2020

Form 8995 means a business. Turbotax automatically used this form. Why?  What I see is that I got a $4413.00 addition to my standard deduction, Line 10 on the 1040, for an additional tax of $2428.00 on line 15, self employment tax.  That's not a deal i want to make.

SusanY1
Level 15
May 1, 2020

If you have income from self-employment, work as an independent contractor, or other income that is paid to you on Form 1099-MISC then for tax purposes you have a "business".  As such, your business income is subject to the self-employment tax (which you see on Line 15) but in certain instances you are also entitled to the relatively new Qualified Business Income (QBI) deduction that you see on Line 10.  

 

For income paid to you in Box 7 (nonemployee compensation) of Form 1099-MISC, there is generally no way around the self-employment tax on the net profit. 

 

Do be sure that you have entered all of the data necessary to deduct expenses related to the income (in the business income section of TurboTax) which reduces the net profit and, therefore, the self-employment tax.  

 

@JamesLynn

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Level 2
May 5, 2020

The only problem with what you answered is that I never received a 1099 Misc. statement from anyone.

JimLynn

Level 2
January 19, 2022

i dont have a business so where on my return do i need to go to undo whatever i said to qualify for not paying taxes on it.  It wont let me finish without form 8995.  So confused

Level 15
January 19, 2022

@gmasue59 Form 8995 is used to determine your qualified business income deduction (QBI deduction). This may apply to income reported on a schedule K you may have received from an S corporation or partnership. It may also apply to rental income your may have reported. I suggest you go back through any entries you made in these areas and make sure you answered any and all questions regarding QBI.

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