How to File IRS Form 8995 for Qualified Business Income (QBI) Deduction for Schedule C Business

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Certain taxpayers may be able to deduct up to 20% of their qualified business income (QBI) from qualified trades or businesses. The QBI deduction under IRC Section 199A was added as part of the Tax Cuts and Jobs Act (TCJA) in 2017.

In this example, we look at a self-employed taxpayer with a consulting business run through a single-member disregarded LLC. The Taxpayer reports the income & expenses on Schedule C and completes Form 8995 to calculate the QBI deduction.

The deduction in this example is limited based on the overall 20% limitation on taxable income before the QBI deduction.

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DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.

#QBI #Form8995 #Section199A #TaxDeductions

[ahmandamahan]

Very helpful best video for this type of question thank you for being detailed and giving examples

[dhruvjoshi]

Jason thank you for explaining things like this .

[Ben-qhku]

Great video, thank to this video I completed my taxes😅

[E-Zelles]

If you are 100% shareholder in an S-corp. Where do you put the info from. 8995 into your 1120S and subsequently the k-1 as well

[mmmaxg]

OUTSTANDING VIDEO! Thanks for making it...:)

[alexborton]

Hello, Selling goods on Amazon is a SSTB?

[azizjay]

I fill a tax I only do uber driver I don’t know why they the tax office filled 8995 form is that wrong or normal can you answer my question please

[michelemccauley]

TMA.

What is ECI? Please, if you're going to make something that's simpler than what the IRS has made, you have to speak English, not acronym.