U.S. · Tax forms
K-1 (1041) box 14 code Z? It is code I.
Where the 199A qualified business income information is, and which form to use for 2025.
There is no code Z in box 14 of a 2025 Schedule K-1 (Form 1041). The section 199A qualified business income (QBI) information is box 14 code I. Use Form 8995 if you have QBI, section 199A dividends or PTP income, your 2025 taxable income before the QBI deduction is at most $197,300 ($394,600 if married filing jointly), and you are not a patron in a specified agricultural or horticultural cooperative. Otherwise use Form 8995-A.
Which form: 8995 or 8995-A?
Result
What the box 14 code I statement can include
| Item | Meaning | Where it is used (per the IRS instructions) |
|---|---|---|
| QBI | Your pro rata share of qualified business income items from the trust or estate | Qualified items only; the amounts may include items you cannot use. See the instructions for Form 8995 or 8995-A. |
| W-2 wages | Your share of W-2 wages allocable to the QBI of each qualified trade or business | Instructions for Form 8995 or 8995-A. |
| UBIA of qualified property | Your share of unadjusted basis immediately after acquisition of qualified property | Instructions for Form 8995 or 8995-A. |
| Section 199A dividends | Your share of net section 199A dividends | Instructions for Form 8995 or 8995-A. |
| Qualified PTP income | Income from qualified publicly traded partnerships | Instructions for Form 8995 or 8995-A. |
| Cooperative patron items | QBI items, W-2 wages and the section 199A(g) deduction tied to specified cooperatives | Form 8995-A and its Schedule D (patron reduction). |
The code Z mix-up
The partnership K-1 (Form 1065) reports this information in box 20 code Z (see that page). On the Form 1041 K-1 for estates and trusts the letters stop at M and then ZZ. The section 199A line is code I. The S corporation version of the same information is box 17 code V, which has its own page.
What the deduction is
The instructions say you may be allowed a deduction of up to 20% of your apportioned net qualified business income plus 20% of your apportioned qualified REIT dividends (section 199A dividends) and qualified publicly traded partnership income from the trust or estate. The estate or trust provides the information you need. The amounts are your apportioned pro rata share and can include items that are not usable in your own calculation, because the QBI deduction only counts qualified items included or allowed in taxable income.
Form 8995 or Form 8995-A
The instructions list three conditions for the simplified Form 8995: you have QBI, section 199A dividends or PTP income; your 2025 taxable income before the QBI deduction is at most $197,300 if you are single, married filing separately, head of household, a qualifying surviving spouse, or a trust or estate, or at most $394,600 if married filing jointly; and you are not a patron in a specified agricultural or horticultural cooperative. If you do not meet all three, use Form 8995-A. A patron must use Form 8995-A and also complete its Schedule D to figure the patron reduction.
Example (illustrative): a single beneficiary with $150,000 of taxable income before the QBI deduction and no cooperative patron items meets all three tests, so Form 8995 is the form. The same person at $250,000 of taxable income uses Form 8995-A.
Limits of this page
The checker applies only the three tests in the 2025 instructions. It does not figure the deduction itself. For an estimate of the deduction see the QBI deduction calculator. Other box 14 codes are on the box 14 overview.
Sources
- Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2025): Box 14, Code I. Section 199A information, including the Form 8995 and Form 8995-A tests and the 2025 income limits. Read November 2, 2026.
- Schedule K-1 (Form 1041) for 2025, page 2 code list: Page 2 list of codes for box 14 (code I, Section 199A information). Read November 2, 2026.
IRS instruction pages last reviewed April 30, 2026. Form and line references are those printed in the 2025 forms and instructions and can change.
Frequently asked questions
Is there a box 14 code Z on a Schedule K-1 (Form 1041)?
No. The 2025 code list for box 14 runs A through M and then ZZ. Section 199A information is code I.
Which form do I use for the QBI deduction from a trust K-1?
Form 8995 if you meet all three simplified-form tests; otherwise Form 8995-A.
What are the 2025 taxable income limits for Form 8995?
Taxable income before the QBI deduction must be $197,300 or less for single, married filing separately, head of household, qualifying surviving spouse, trust or estate, or $394,600 or less for married filing jointly.
Can the box 14 code I amounts be used as shown?
Not always. The amounts are your apportioned share and may include items that are not includible in your own QBI calculation, so use the Form 8995 or 8995-A instructions to pick the qualified items.
What if the estate or trust was a patron of a cooperative?
You must use Form 8995-A and complete Schedule D (Form 8995-A) to figure the patron reduction.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The estate, trust or corporation that issued the K-1, a CPA or an enrolled agent can confirm what a box or code means for your return. Everything runs in your browser; nothing you enter is sent anywhere.