Form 8995 - Qualified Business Income Deduction (Simplified Computation)

Sep 20, 2026

Form 8995 (2025) is used to claim the qualified business income deduction under the U.S. Qualified Business Income (QBI) rules. It provides a simplified computation when taxable income before the QBI deduction is at or below specified thresholds. The form guides taxpayers in calculating qualified business income, qualified REIT dividends and publicly traded partnership income, applying limitation steps, and determining the final QBI deduction amount to enter on their tax return.

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Qualified Business Income Deduction - Simplified Computation

Eligibility and when to use the form

Step-by-step calculation lines

Final deduction and limitations

| Fom8995
Department of the Treasury
nternal Revenue Service | Qualified Business Income Deduction
Simplified Computation
Attach to your tax return.
Go to www.irs.gov/Form8995 for instructions and the latest information. | | OMB No.1545-0074 | | --- | --- | --- | --- | | | | | 2025
Attachment
Sequence No.55 | | 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 aqualified trade or business,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 at or below $197,300 ($394,600 if married filing jointly),and you aren't a patron of an agricultural or horticultural cooperative. | 1 | (a)Trade,business,or aggregation name | | (b)Taxpayer
identification number | | (c)Qualified business
income or(loss) | | | --- | --- | --- | --- | --- | --- | --- | | 1 | | | | | | | | ii | | | | | | | | iii | | | | | | | | iv | | | | | | | | V | | | | | | | | 2 Total qualified business income or (loss).Combine lines li through 1v,
column(c) .····················
3 Qualified business net (loss)carryforward from the prior year.....
4 Total qualified business income.Combine lines 2 and 3.If zero or less,enter -0-
5 Qualified business income component.Multiply line 4 by 20%(0.20)...
6 Qualified REIT dividends and publicly traded partnership(PTP)income or (loss)
(see instructions) . .. .. .. . ..
7 Qualified REIT dividends and qualified PTP (loss)carryforward from the prior
year.................
8 Total qualified REIT dividends and PTP income.Combine lines 6 and 7.If zero
or less,enter-0- ..........
9 REIT and PTP component.Multiply line 8by 20%(0.20)
10 Qualified business income deduction before the income limitation.Add lines 5 an
11 Taxable income before qualified business income deduction (see instructions)
12 Enter your net capital gain,if any,increased by any qualified dividends
(see instructions)................
. .
13 Subtract line 12 from line 11.If zero or less,enter -0- ........
14 Income limitation.Multiply line 13 by 20%(0.20)......
. ..
15 Qualified business income deduction.Enter the smaller of line 10 or line 14.Also
the applicable line of your return (see instructions) .....
···
16 Total qualified business (loss)carryforward.Combine lines 2 and 3.If greater tha
17 Total qualified REIT dividends and PTP(loss)carryforward.Combine lines 6 a
zero,enter-0-. | | 2 | | | | | | | | 3 | | | | | | | | 4 | | | | | | | | 6 | | | 5 | | | | | | | | | | | | | 7 | | | | | | | | 8 | | | | | | | | d 9
11 | | | 9 | | | | | | | | 10 | | | | | | | | | | | | | 12 | | | | | | | | 13 | | | | | | | | enter this amount on
······
n zero,enter -0-..
nd 7.If greater than | | | 14 | | | | | | | | 15 | | | | | | | | 16 | ( ) | | | | | | | 17 | ( ) | For Privacy Act and Paperwork Reduction Act Notice,see instructions. Form 8995(2025)Created 9/12/25 Cat.No.37806C

FAQs

When can you use Form 8995 (2025) to claim the deduction?

You can use the simplified computation if you have qualified business income from an eligible trade or business, and your taxable income before the QBI deduction is at or below the stated threshold. The form also applies when you aren’t a patron of an agricultural or horticultural cooperative.

What income types does Form 8995 include in the calculation?

The form includes qualified business income (or loss) and also incorporates qualified REIT dividends and publicly traded partnership income (or loss), including any carryforwards from the prior year.

How is the qualified business income deduction amount determined on this form?

The deduction is generally the smaller of the computed amount before the income limitation and the amount after applying the income limitation based on the form’s specified lines.

Sep 20, 2026

Upload by Lucas Martin