Fill out Form 8995 (Qualified Business Income Deduction Simplified Computation) online
Form 8995 is the simplified version used to calculate the Qualified Business Income (QBI) deduction under Section 199A. This deduction allows eligible taxpayers to deduct up to 20% of qualified business income from pass-through entities such as sole proprietorships, partnerships, S corporations, and certain trusts and estates.
How to fill out Form 8995 (Qualified Business Income Deduction Simplified Computation)
Identify qualified businesses
List each trade or business that generates qualified business income. Include income from Schedule C, Schedule E (partnerships and S corporations), and Schedule F.
Enter qualified business income for each
For each business, enter the net qualified business income amount. This is the net income from the business reduced by related deductions such as the deductible portion of self-employment tax.
Calculate the total QBI deduction
Combine the QBI from all businesses and multiply by 20%. Compare this amount to 20% of your taxable income before the QBI deduction (minus net capital gains). The deduction is the lesser of the two amounts.
Enter the deduction on Form 1040
Transfer the QBI deduction from Form 8995 to Form 1040, line 13. This reduces your taxable income but does not reduce adjusted gross income or affect other AGI-based calculations.
About Form 8995 (Qualified Business Income Deduction Simplified Computation)
Who needs this form
Taxpayers with qualified business income whose taxable income before the QBI deduction is at or below $191,950 (single) or $383,900 (married filing jointly) for the applicable tax year. Taxpayers above these thresholds must use the more detailed Form 8995-A instead.
Where to submit
Attach Form 8995 to your Form 1040 or 1040-SR when filing your annual federal income tax return. The deduction is reported on Form 1040, line 13.
Source and content freshness
- Reviewed: 2026-02-24
- Filing deadlines may shift for weekends and holidays. Verify due dates with official instructions.
Common mistakes to avoid
- Using Form 8995 when taxable income exceeds the simplified computation threshold (Form 8995-A is required instead)
- Including wages or guaranteed payments from a partnership in qualified business income (these are not QBI)
- Forgetting to reduce QBI by the deductible portion of self-employment tax, self-employed health insurance, or SEP/SIMPLE contributions
- Not separately calculating QBI for each qualified trade or business before combining them
Frequently asked questions
Is this form free to fill out?
Yes. SimplePDF lets you fill out PDF forms in your browser for free. Most users can do this without creating an account. For team and business features, see our pricing plans.
Do I need to create an account?
No. You can fill out and download the form without creating an account or signing up.
Is my data secure?
Yes, you edit documents in your browser. In the free flow, SimplePDF does not process document contents on its servers. In paid plans, completed files are stored either by SimplePDF or in your own storage, based on your settings. Read our privacy policy for more details.
Is this legal, tax, or immigration advice?
No. SimplePDF provides form-filling tools and general informational content, not professional advice. Verify requirements with official instructions or a qualified professional.
Can I share a direct link to this form?
Yes! You can create a direct link to any PDF by prefixing its URL with simplepdf.com/. For example: simplepdf.com/https://example.com/form.pdf. Anyone who opens the link can fill out the form immediately in their browser. You can also embed the editor in your own website.
What is the difference between Form 8995 and Form 8995-A?
Form 8995 is the simplified version for taxpayers whose taxable income is at or below the threshold ($191,950 single, $383,900 married filing jointly). Form 8995-A is the more detailed version required when income exceeds those thresholds or when the taxpayer has a specified service trade or business. Form 8995-A includes additional limitations based on W-2 wages paid and the unadjusted basis of qualified property.
SimplePDF provides a tool to fill out PDF forms. We are not affiliated with any government agency or form issuer. It is your responsibility to verify the accuracy and completeness of any information entered. SimplePDF is not liable for errors, omissions, or consequences resulting from the use of filled-out forms.