Form 8995 Changes for 2026: New Minimum Deduction Line | HelloBooks The draft 2026 Form 8995 adds line 16 for the minimum QBI deduction and raises thresholds to $201,750 and $403,500. What the IRS has published so far.
From 2026 a client with at least $1,000 of qualified business income gets a QBI deduction of at least $400. The IRS draft 2026 Form 8995 (created May 1, 2026) shows where that lands.
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Minimum QBI deduction from 2026
$400
Applies: Tax year 2026From IRS.gov · checked October 10, 2026
The 2026 Form 1040-ES says the QBI deduction is now permanent, with a minimum $400 deduction for anyone with at least $1,000 of qualified business income, and that the phase-in range is $150,000 for joint filers and $75,000 for others. The draft form calls the minimum one for active QBI; the 2026 instructions defining “active” were not published when this page was checked.
Side businesses and part-year sole proprietors with small profits. A client with $3,000 of QBI and little taxable income may have had a tiny deduction before; the minimum puts a floor under it. Make sure their books show the activity clearly enough to support “active”.
The plain-English summary for business owners
Forms 8995 and 8995-A · tax year 2025
Form 1040 · tax year 2026 (draft)
Schedule C (Form 1040) · tax year 2025
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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