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March 10, 2025
Question

Not self-employed, nor do I own a business but am getting forms 8995 and QBI Deduction. Deleted both forms, but QBI ded still showing up. How can I get this cleaned up?

  • March 10, 2025
  • 1 reply
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    1 reply

    DawnC
    March 10, 2025

    You may not need to delete it.   Do you have a 1099-DIV with amounts in Box 5?   That income is qualified business income (QBI).  

     

    Generally, you may be allowed a deduction of up to 20% of your apportioned net qualified business income (QBI) plus 20% of your apportioned qualified REIT dividends, also known as section 199A dividends, and qualified publicly traded partnership (PTP) income from the trust or estate.

     

    Other reasons you may be getting a QBI Deduction

     

    For the purposes of the deduction, QBI is defined as net business income, excluding:

     

    • Income generated outside the United States
    • Investment income
    • W-2 compensation paid to an S corporation owner
    • Guaranteed payments to a partner
    • Income from REITs, publicly traded partnerships, and qualified cooperatives (these entities may qualify for a 20% deduction under a different set of rules, the explanation of which is beyond the scope of this article)
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    mld3817Author
    March 12, 2025

    Thank you!