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Use this article to determine how and where the Qualified Business Income Deduction (QBID) is calculating and how to correct any QBID amounts you disagree with. If you are looking for information on how to enter QBID information, see the Qualified business income deduction (QBID) overview.
Calculations
Where does my QBID calculation appear in the return?
UltraTax CS calculates the Qualified Business Income Deduction on Form 1040, line 13 using the following Forms.
Form 8995 - Qualified Business Income Deduction Simplified Computation
This form prints under the following conditions:
- When the taxpayer has qualified business income and
- Taxable income before qualified business income deduction is less than $170,050 ($340,100 if married filing jointly) and
- The taxpayer is not a patron in a specified agricultural or horticultural cooperative
Form 8995-A - Qualified Business Income Deduction
This form prints under the following conditions:
- When the taxpayer has qualified business income (QBI)
- Taxable income before QBID is more than $170,050 ($340,100 if married filing jointly)
- Or the taxpayer is a patron in a specified agricultural or horticultural cooperative
The following schedules calculate as components of Form 8995-A:
- Schedule A - Specified Service Trades or Businesses
- Schedule B - Aggregation of Business Operations
- Schedule C - Loss Netting and Carryforward
- Schedule D - Special Rules for Patrons of Agricultural or Horticultural Cooperatives
Where does the Qualified Business Income from each activity come from?
For a breakdown of each activity’s QBI, see the Qualified Business Income worksheet on the last page of the Schedule C, Schedule F, or Schedule E in Form view. These worksheets explain the amounts for each activity that flows to the QBID forms and schedules.
Supporting QBI statements will also print with the worksheets, as necessary, to provide additional information.
Troubleshooting scenarios
Schedule C, Business
My Schedule C activity does not appear on Form 8995-A.
A business is included in the QBID calculation but does not qualify.
Schedule E, Rental
Schedule F, Farm
A Schedule F activity is automatically included in the QBID calculation but does not qualify.
Schedule K-1, 1065 and 1120S
For more information about QBI from a 1065 or 1120S K-1, see Report qualified business income (QBI) for a partnership.
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