Qualified business income deduction (QBID) calculations
UltraTax CS automatically calculates the qualified business income deduction (QBID) on Form 1040, line 13, and generates Form 8995 based on your taxable income and business type.
UltraTax CS calculates the qualified business income deduction (QBID) on Form 1040, line 13 using the following forms.
Form 8995: Qualified Business Income Deduction Simplified Computation
The system generates Form 8995 when you meet all these conditions:
- You have qualified business income (QBI).
- Your taxable income before QBID is less than $197,300 ($394,500 if married filing jointly).
- You aren't a patron in a specified agricultural or horticultural cooperative.
Form 8995-A: Qualified Business Income Deduction
The system generates Form 8995-A when you meet these conditions:
- You have QBI.
- Your taxable income before QBID exceeds $197,300 ($394,500 if married filing jointly).
- Or you are a patron in a specified agricultural or horticultural cooperative.
The system calculates these schedules 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
View QBI details
To see a detailed breakdown of each activity's QBI, review the Qualified Business Income worksheet on the last page of Schedule C, Schedule F, or Schedule E in Form view. These worksheets show the amounts that transfer from each activity to the QBID forms and schedules.
UltraTax CS prints supporting QBI statements with the worksheets when needed to provide additional information.
