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Qualified Business Income Deduction - Sole Proprietor Income
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Per IRS Instructions for Form 1040 and 1040-SR, page 31:

Line 13

Qualified Business Income Deduction (Section 199A Deduction)

To figure your Qualified Business Income Deduction, use Form 8995 or Form 8995-A as applicable.

    Use Form 8995 if:

  • You have qualified business income, qualified REIT dividends, or qualified PTP income (loss),
  • Your 2023 taxable income before the qualified business income deduction is less than or equal to $170,050 ($340,100 if married filing jointly), and
  • You aren’t a patron in a specified agricultural or horticultural cooperative.

    If you don’t meet these requirements, use Form 8995-A, Qualified Business Income Deduction. Attach whichever form you use (Form 8995 or 8995-A) to your return. See the instructions for Forms 8995 and 8995-A for more information for figuring and reporting your qualified business income deduction.


To complete the Qualified Business Income (QBI) section for self-employed or sole proprietor income in the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Business Income dropdown, then click Qualified business income (QBI) deduction.
  3. On the screen titled Qualified Business Income Deduction, click Yes.
  4. On the screen titled Enter any qualified business net (loss) carryforward from 2022., click the data entry field below Carryforward from 2022 and type the amount.

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