Why do I need Form 8995-A?

[64dancer]

Line 2                                                                 616

Line 7                                                            19,875

Line 8                                                          100,000

Line 9 - Divide Line 7 by Line 8              S/B  0.1988, but Turbo Tax fills in 0.001988

Line 10 - Subtract Line 9 from 100%     S/B 80.12%, but Turbo Tax fills in 0.8012%

Line 11 - Multiply Line 2 by Line 10        Miraculously, this number is filled in correctly by TT (not because they                                                                              followed the instructions. If they use their numbers, Line 11 would be                                                                              $4.94, not the correct answer of $494)

Since I cannot use the downloaded version on my old computer, I cannot change Lines 9 & 10 to be correct. Turbo Tax MUST fix this problem with the decimal places.

[64dancer]

Line 2                                                                 616

Line 7                                                            19,875

Line 8                                                          100,000

Line 9 - Divide Line 7 by Line 8              S/B  0.1988, but Turbo Tax fills in 0.001988

Line 10 - Subtract Line 9 from 100%     S/B 80.12%, but Turbo Tax fills in 0.8012%

Line 11 - Multiply Line 2 by Line 10        Miraculously, this number is filled in correctly by TT (not because they                                                                              followed the instructions. If they use their numbers, Line 11 would be                                                                              $4.94, not the correct answer of $494)

Since I cannot use the downloaded version on my old computer, I cannot change Lines 9 & 10 to be correct. Turbo Tax MUST fix this problem with the decimal places.

[gmasue59]

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

[ThomasM125]

@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.

[ghandrews]

nope. Turbotax just keeps adding the form back in!

[JulieS]

If you have a form that is telling TurboTax that you need Form 8995-A, deleting will not help because it will just re-populate from the source form. 

Here are some of the many forms that trigger Form 8995:

• Self-employment of any kind, including 1099-NEC or 1099-MISC that is treated as SE income.
• Partnership interests.
• K-1 forms, even those from investments.
• Form 1099-DIV with an amount in box 5.

Sometimes it can be triggered by entering $0 in all the fields that don't apply to you. In general that is a bad idea. In most cases, you can leave blank the things that don't apply. When a number is required, the screen will say so. 

If you don't have any of these forms, please ask for Tax Help from within the program or call to get someone to go over your entire tax return with you. 

Contact info.

[ghandrews]

JulieS,

Thank you so much for a clear explanation!

I contacted TurboTax yesterday and the agent I spoke with didn't have a clue about this. I wish I could remember his name so I could give it to you for you to educate him

[NM1]

@JulieS, thank you for continuing to address this, but it is no longer me who needs a reply.

The original bug I and others posted about two years ago was that all the source forms either had nothing relevant in them or didn't even exist, yet the "QBI worksheet" was being populated *automatically* by TurboTax with all zeroes, which then caused the 8995-A to be generated, also with all zeroes.

I have no idea whether this is still a problem now, since I haven't started taxes yet this year, but at that time, *all* the possible things that might have applied, which several responders helpfully provided, simply did not apply, at all, period.

@ghandrewsIf the solution I posted at that time doesn't work for you, then there may be a different problem now. Alternatively, maybe you didn't delete the relevant worksheet further down the chain; merely deleting the 8995 form itself absolutely did not fix the error. But you should also check the possibility that you do have something obscure applicable somewhere, per JulieS's suggestions.