Form 8995-A(2025) - Qualified Business Income Deduction Worksheet

Sep 20, 2026

Form 8995-A(2025) determines the qualified business income deduction under section 199A. It covers trade, business, or aggregation information; calculation of adjusted qualified business income; and optional phased-in reduction for certain taxable income levels. The worksheet applies percentage rules to W-2 wages, UBIA of qualified property, and includes limitations and DPAD for agricultural or horticultural cooperatives. It also computes the final deduction by combining qualified business income components, REIT dividends, and PTP income or loss carryforwards.

LanguageEnglish

CategoryForms

FormatPDF

Pages2

Reading Time1 min

AccessFree to download

Part I - Trade, Business, or Aggregation Information

Part II - Determine Your Adjusted Qualified Business Income

Part III - Phased-in Reduction

Part IV - Determine Your Qualified Business Income Deduction

| Internal Revenue Service | Go to www.irs.gov/Form8995A for instructions and the latest information. | | Sequence No.55A | | --- | --- | --- | --- | | Name(s)shown on return | | Your taxpayer identification number | | | | | | | Note:You can claim the qualified business income deduction only if you have qualified business income from a qualified trade orbusiness,real estate investment trust dividends,publicly traded partnership income,ora domestic production activities deductionpassed through from an agricultural or horticultural cooperative.See instructions. Use this form if your taxable income,before your qualified business income deduction,is above $197,300 ($394,600 if married flingjointly),oryou're a patron of an agricultural or horticultural cooperative. Partl Trade,Business,or Aggregation Information Complete Schedules A,B,and/orC(Form 8995-A),as applicable,before starting Part 1.Attach additional worksheets when needed.See instructions. (e)Check if (b)Check if (c)Check if (d)Taxpayer 1 (a)Trade,business,or aggregation name identification number specified service aggregation patron □ □ □ A □ □ □ B □ □ □ C Part Il Determine Your Adjusted Qualified Business Income A C B 2 Qualified business income from the trade,business,oraggregation. 2 See instructions ................ 3 Multiply line 2 by 20%(0.20).If your taxable income is $197,300 or less($394,600 if married filing jointly),skip lines 4 through 12 3 and enter the amount from line 3 on line 13 . . .. .. . 4 Allocable share of W-2 wages from the trade,business,or aggregation ................. 4 5 Multiply line 4 by 50%(0.50) .......... 5 6 6 Multiply line 4 by 25%(0.25) .... 7 Allocable share of the unadjusted basis immediately after 7 acquisition (UBIA)of all qualified property ........ 8 Multiply line 7 by 2.5%(0.025)........... 8 9 Add lines 6 and 8 ................ 9 10 Enter the greater of line 5 or line 9.......... 10 11 W-2 wage and UBIA of qualified property limitation.Enter the 11 smaller of line 3 or line 10 ............. 12 Phased-in reduction.Enter the amount from line 26,if any... 12 13 Qualified business income deduction before patron reduction. 13 Enter the greater of line 11 or line 12.......... 14 Patron reduction.Enter the amount from Schedule D(Form 8995-A), 14 line 6,if any.See instructions ............ 15 Qualified business income component.Subtract line 14 from line 13 15 16 Total qualified business income component.Add all amounts 16 reported on line 15............ For Privacy Act and Paperwork Reduction Act Notice,see separate instructions. Form 8995-A(2025)Created 9/12/25 Cat.No.71661B PartⅢ Phased-in Reduction Complete Part ⅢI only if your taxable income is more than $197,300 but not $247,300 ($394,600 and $494,600 if married fling jointly) and line 10 is less than line 3.Otherwise,skip Part Ⅲ. | 17 Enter the amounts from line 3 .....
18 Enter the amounts from line 10.....
19 Subtract line 18 from line 17 .....
20 Taxable income before qualified business
income deduction ........
21 Threshold.Enter $197,300($394,600 if
married filing jointly) .......
22 Subtract line 21 from line 20 ....
23 Phase-in range.Enter $50,000 ($100,000 if
married filing jointly).......
24 Phase-in percentage.Divide line 22 by line 23
25 Total phase-in reduction.Multiply line 19 by l
26 Qualified business ncome after phase-in re
25 from line 17.Enter this amount here an
corresponding trade or business ... | ..
..
..
20 | | | A | B | C | | --- | --- | --- | --- | --- | --- | --- | | | | . | 17 | | | | | | | | 18 | | | | | | | | 19 | | | | | | | | | | | | | | 21 | | | | |

FAQs

Who should use Form 8995-A?

Use the form if taxable income before the qualified business income deduction is above $197,300 (or $394,600 if married filing jointly), or if you are a patron of an agricultural or horticultural cooperative.

How is the adjusted qualified business income determined?

Part II computes qualified business income, multiplies by 20%, then applies rules using allocable W-2 wages (50%) and UBIA (25% of W-2 wages with UBIA multiplied by 2.5%) to determine the limitation amounts and components.

When do you complete Part III (Phased-in Reduction)?

Complete Part III only if taxable income is more than $197,300 but not $247,300 (or $394,600 to $494,600 if married filing jointly) and line 10 is less than line 3; otherwise, skip Part III.

Sep 20, 2026

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