What is form 8995?

Form 8995 is used for computing the qualified business income (QBI) deduction for individuals, estates, and trusts that have qualified business income from a qualified trade or business. This form applies to taxpayers who have qualified business income from a sole proprietorship, partnership, S corporation, trust, or estate. The QBI deduction is a deduction of up to 20% of qualified business income that is allowed under the Tax Cuts and Jobs Act.

The form includes questions that help determine if the taxpayer is eligible for the QBI deduction and calculates the deduction amount. The form is divided into two sections, Part I and Part II.

Part I is for taxpayers who have a qualified business income (QBI) less than $315,000 (for married filing jointly) or $157,500 (for individuals and other filers). Part II is for taxpayers who have a QBI greater than those amounts.

Taxpayers who have multiple businesses or who operate in multiple countries will be required to complete additional forms to fully report their income and deductions.

Form 8995 also includes several worksheets and instructions to help taxpayers determine the amount of their QBI deduction. The form must be filed with the taxpayer's individual, estate, or trust tax return.