Is there a form to calculate the amount of Section 199A pass-through deductions?

by Nathan A. DeFilippi, CPA | Dec 13, 2018

Regarding the Section 199A pass-through deduction, is there a form to use to calculate the amount? Where on the 1040 should the deduction appear?

Currently, we don’t know what the form will look like to calculate the 199A deduction. Your CPA likely has some version of an internal calculation to best estimate the deduction, but the IRS has not yet released updated forms.

Additionally, it’s not yet clear where the deduction will be placed on the face of Form 1040. Since the deduction is taken after taxable income is calculated, one can surmise it will be located somewhere below the taxable income line, but there are no definitive answers yet. I recommend that you check with a tax professional or check back on the IRS site closer to the end of the year.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Nathan A. DeFilippi, CPA, is a senior tax associate with H2R CPA in Pittsburgh.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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