Updated September 29, 2026. Quick answer: Box 14 code I is section 199A information for the qualified business income (QBI) deduction. The IRS instructions say you use Form 8995 if you meet three conditions and Form 8995-A if you do not. The dollar limit in those instructions is the 2025 figure.
What code I is
The instructions read here are the 2025 edition of the IRS Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (Catalog Number 11374Z, dated March 13, 2025), the edition served at the IRS standing PDF address when read on September 29, 2026. They are written for the beneficiary; the fiduciary’s own instructions are in the Instructions for Form 1041. The IRS instruction reads: “Generally, you may be allowed a deduction of up to 20% of your apportioned net qualified business income (QBI) plus 20% of your apportioned qualified REIT dividends, also known as section 199A dividends, and qualified publicly traded partnership (PTP) income from the trust or estate.” “The trust or estate will provide the information you need to help figure your deduction.”
| Code | Form label | Report on (form’s code list) |
|---|---|---|
| I | Section 199A information | See the beneficiary’s instructions |
Form 8995 or Form 8995-A
The instructions give a three-part test for the simpler form: “Use Form 8995, Qualified Business Income Deduction Simplified Computation, if:” you have QBI, section 199A dividends, or PTP income; “Your 2025 taxable income before your QBI deduction is less than or equal to $197,300 if single, married filing separately, head of household, qualifying surviving spouse, or are a trust or estate, or $394,600 if married filing jointly;” and you are not a patron in a specified agricultural or horticultural cooperative. Otherwise: “Use Form 8995-A, Qualified Business Income Deduction, if you don’t meet all three of these requirements.” Those two dollar amounts are 2025 figures. CMG’s QBI deduction thresholds page carries the later years.
What the fiduciary reports
The instructions list the amounts reported, each apportioned to you pro rata: “The amounts reported reflect your apportioned pro rata share of the trust’s or estate’s W-2 wages allocable to the QBI of each qualified trade or business, or aggregation.” “The amounts reported reflect your apportioned pro rata share of the trust’s or estate’s unadjusted basis immediately after acquisition (UBIA) of qualified property of each qualified trade or business, or aggregation.” “The amount reported reflects your apportioned pro rata share of the trust’s or estate’s net section 199A dividends.”
Cooperative patrons
“If the trust or estate was a patron of an agricultural or horticultural cooperative (specified cooperative), you must use Form 8995-A to figure your QBI deduction.”
Common mistakes
- Using the 2025 dollar limit for a later year. The figures quoted here are from the 2025 instructions.
- Using Form 8995 when the trust or estate was a patron of a specified cooperative. The instructions require Form 8995-A.
- Treating code I as the deduction. It supplies information used to figure your QBI deduction.
Related: Schedule K-1 Box 14 Code H: Net Investment Income Tax, Schedule K-1 Box 14 Codes C, D, J, K, L, M: Form 3468, and the QBI deduction thresholds.
Every box and code in one place: the Schedule K-1 (Form 1041) boxes table. What a K-1 from an estate reports overall is on the Schedule K-1 for estates page.
Sources
- IRS, Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2025): https://www.irs.gov/pub/irs-pdf/i1041sk1.pdf
- IRS, Schedule K-1 (Form 1041) 2025, Beneficiary’s Share of Income, Deductions, Credits, etc., page 2 code list: https://www.irs.gov/pub/irs-pdf/f1041sk1.pdf
Source: the IRS instructions for the beneficiary who receives Schedule K-1 (Form 1041), and the form’s own code list, read at irs.gov on September 29, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the estate’s or trust’s fiduciary or the IRS is the right place to confirm anything consequential.