What is Form 8995?

Form 8995 is the IRS tax form used by pass-through business owners to claim the qualified business income deduction when their taxable income falls below $191,950 for single filers or $383,900 for married filing jointly. This simplified form calculates the 20% deduction without wage or property limitations. Businesses above these thresholds must use Form 8995-A. The One Big Beautiful Bill Act enhanced eligibility by raising phase-in thresholds and introducing a minimum deduction. Strategic coordination with S Corporation elections and Traditional 401k contributions maximizes deduction benefit.

Related Terms

What is Qualified business income?

What is a Pass-through entity?

What is an S Corporation?

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