Instructions for IRS Form 8995 Qualified Business Income Deduction Simplified Computation

IRS Form 8995 Qualified Business Income Deduction Simplified Computation

This document contains official instructions for IRS Form 8995 , Qualified Business Income Deduction Simplified Computation - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8995 is available for download through this link.

FAQ

Q: What is IRS Form 8995?
A: IRS Form 8995 is a form used to calculate the Qualified Business Income Deduction.

Q: What is the Qualified Business Income Deduction?
A: The Qualified Business Income Deduction is a deduction that certain business owners can take on their tax returns.

Q: Who is eligible for the Qualified Business Income Deduction?
A: Owners of certain pass-through businesses, such as partnerships, S corporations, and sole proprietorships, may be eligible for the deduction.

Q: What is the purpose of the Simplified Computation version of Form 8995?
A: The Simplified Computation version of Form 8995 is an optional simplified method for calculating the Qualified Business Income Deduction.

Q: How do I use the Simplified Computation version of Form 8995?
A: You can use the Simplified Computation version of Form 8995 if you meet certain eligibility requirements and your total taxable income is below a specified threshold.

Q: What are the eligibility requirements for using the Simplified Computation version of Form 8995?
A: To use the Simplified Computation version of Form 8995, your taxable income must come from a qualified trade or business and you must have no net capital gains or qualified dividends.