U.S. · Form 8995-A Schedule A
Form 8995-A Schedule A SSTB fields.
Which businesses count as a specified service trade or business, and when Schedule A applies.
Schedule A (Form 8995-A) is for a specified service trade or business (SSTB) when your 2025 taxable income before the QBI deduction is more than $197,300 but not more than $247,300 ($394,600 and $494,600 if married filing jointly). At or below the lower figure an SSTB is treated as a qualified trade or business; above the upper figure it does not qualify for the deduction.
Look up an SSTB field
Result
Reference table
| SSTB field | What the IRS includes | What the IRS excludes |
|---|---|---|
| Health | Physicians, pharmacists, nurses, dentists, veterinarians, physical therapists, psychologists and other similar healthcare professionals. | Services not directly related to a medical services field, such as health clubs or spas, payment processing, or the research, testing, manufacture and sale of pharmaceuticals or medical devices. |
| Law | Lawyers, paralegals, legal arbitrators, mediators and similar professionals. | Services that do not require skills unique to the field of law, such as printers, delivery services or stenography services. |
| Accounting | Accountants, enrolled agents, return preparers, financial auditors and similar professionals. | The instructions list no carve-out for this field. |
| Actuarial science | Actuaries and similar professionals. | The instructions list no carve-out for this field. |
| Performing arts | Actors, singers, musicians, entertainers, directors and similar professionals. | Services that do not require skills unique to creating performing arts, such as maintaining equipment or facilities, or broadcasting video or audio of performing arts to the public. |
| Consulting | Professional advice and counsel to help clients reach goals and solve problems, advocacy advice aimed at influencing a government decision, and lobbyists. | Services other than advice or counsel, such as sales or training and education courses, and consulting embedded in or ancillary to a non-SSTB business when there is no separate payment for it. |
| Athletics | Athletes, coaches and team managers in sports such as baseball, basketball, football, soccer, hockey, golf and racing. | Services that do not require skills unique to athletic competition, such as maintaining equipment or facilities, or broadcasting video or audio of athletic events. |
| Financial services | Managing clients’ wealth, advising on finances, retirement and wealth transition plans, valuation, merger and acquisition advice, restructurings, and underwriting or acting as agent in issuing securities. | Taking deposits or making loans. Arranging lending transactions between a lender and borrower is included. |
| Brokerage services | People who arrange transactions between a buyer and a seller of securities for a commission or fee, such as stock brokers. | Services provided by real estate agents and brokers, or insurance agents and brokers. |
| Investing and investment management | Providing, for a fee, investing, asset management or investment management services, including advice on buying and selling investments. | The service of directly managing real property. |
| Trading | People who trade in securities, commodities or partnership interests (as defined in the cited Code sections). | The instructions list no carve-out for this field. |
| Dealing | Dealing in securities, commodities or partnership interests (as defined in the cited Code sections). | The instructions list no carve-out for this field. |
| Reputation or skill | Any trade or business whose principal asset is the reputation or skill of one or more employees or owners, shown by fees for endorsements, licensing an individual’s image, name, voice or trademark, or fees for appearing at an event or on radio, television or other media. | The instructions list no carve-out for this field. |
How the three bands work
The IRS instructions set two exceptions for 2025. Exception 1: if taxable income before the QBI deduction is not more than $394,600 (married filing jointly) or $197,300 (all other returns), the SSTB is treated as a qualified trade or business and can produce QBI. Exception 2: if it is more than that but not more than $494,600 (joint) or $247,300 (others), only an applicable percentage of the SSTB is treated as qualified, and you complete Schedule A. Above the upper figure, no QBI, W-2 wages or unadjusted basis of qualified property from the SSTB is counted.
| 2025 taxable income before QBI deduction | Married filing jointly | All other returns |
|---|---|---|
| SSTB treated as qualified (Exception 1) | $394,600 or less | $197,300 or less |
| Partly qualified, Schedule A needed (Exception 2) | More than $394,600, up to $494,600 | More than $197,300, up to $247,300 |
| SSTB does not qualify | More than $494,600 | More than $247,300 |
Which part of Schedule A
The instructions say Schedule A, Part II is for SSTBs that are publicly traded partnerships (PTPs), and Part I is for all other SSTBs. Enter your QBI or qualified PTP income for each SSTB on lines 2 and 16, and take taxable income from the “Taxable income before QBI deduction” instructions for lines 5 and 18. If your taxable income is not more than the lower figure and you are not a patron of an agricultural or horticultural cooperative, the instructions say not to file Form 8995-A at all and to file Form 8995 instead.
De minimis rules
An activity is not treated as an SSTB under three tests in the instructions. Rule 1: gross receipts of $25 million or less and less than 10% from performing services in a specified field. Rule 2: gross receipts over $25 million and less than 5% from those services. Rule 3 runs the other way: if your business provides services or property to an SSTB and there is 50% or more common ownership, that portion is treated as a separate SSTB for the common owners.
Worked example
A single filer has a consulting business and $210,000 of taxable income before the QBI deduction. That is more than $197,300 and not more than $247,300, so the consulting business falls in Exception 2: Schedule A applies and only an applicable percentage of the business counts. At $260,000 the same business would not qualify at all. The dollar figures are illustrative; the bands are the IRS’s for 2025.
What this page does not do
It does not tell you whether your particular business is an SSTB. That depends on the facts and the regulations behind these instructions. It also does not work out the applicable percentage; follow Schedule A itself. See the Form 8995 vs 8995-A chooser for the form decision and the QBI deduction calculator for an estimate.
Sources
- Instructions for Form 8995-A (2025): Taxable-income bands, the SSTB field list, de minimis rules and the Schedule A instructions. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is an SSTB on Form 8995-A?
A specified service trade or business is a business in one of the fields the instructions list: health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, investing and investment management, trading, dealing, or a business whose principal asset is the reputation or skill of its owners or employees.
When do I complete Schedule A of Form 8995-A?
Only if your trade or business is an SSTB and your 2025 taxable income is more than $197,300 but not more than $247,300 ($394,600 and $494,600 if married filing jointly).
What happens if my taxable income is above the upper figure?
The instructions say that if taxable income is more than $247,300 ($494,600 if married filing jointly), the SSTB does not qualify for the deduction.
Is a business with only a little service income an SSTB?
Not necessarily. Under de minimis rule 1, a business with gross receipts of $25 million or less is not an SSTB if less than 10% of receipts come from services in a specified field. Rule 2 applies 5% above $25 million.
Which part of Schedule A is for publicly traded partnerships?
Part II is for SSTBs that are PTPs. Part I is for all other SSTBs.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.