Form 8990 is the IRS form used to calculate how much business interest expense you can deduct under Section 163(j).
If you open our fillable Form 8990, you can save time by completing it right there in your browser and saving it for your return in minutes.
IRS Form 8990 is used for calculating the business interest expense deductible under Section 163(j) and any disallowed amount. The limit generally equals business interest income, 30% of adjusted taxable income, and floor plan financing interest expense. Disallowed interest generally carries forward, but partnerships allocate it to partners under special rules.
Taxpayers with business interest expense, disallowed business interest carryforwards, or current- or prior-year excess business interest expense should use Form 8990 unless an exclusion applies. Pass-through entities allocating excess taxable income or excess business interest income must also file.
For tax years beginning in 2025, the small-business filing exemption generally covers taxpayers with average annual gross receipts of $31 million or less for the three preceding tax years, provided they are not tax shelters and have no excess business interest expense from a partnership.
Form 8990 is due with the tax return it accompanies, including any valid filing extension. For calendar-year filers, the usual deadlines are March 15 for partnerships and S corporations and April 15 for individuals and C corporations, subject to weekend and legal-holiday adjustments. For 2025 returns filed in 2026, these dates are March 16 and April 15, respectively.
If Form 8990 is not submitted, there are no separate Form 8990 penalties specified. However, they may arise under rules applicable to the underlying return. Partnerships and S corporations may face penalties for missing required information, subject to reasonable-cause relief.
Also, an excessive interest deduction that results in an underpayment may also trigger an accuracy-related penalty if the applicable conditions are met.
You file Form 8990 by attaching it to your federal tax return, such as Form 1040, 1120, 1065, or 1120-S, and submit it with that return.
U.S. shareholders required to complete Form 8990 for an applicable controlled foreign corporation generally attach it to the corresponding Form 5471. Special rules apply to CFC groups and safe-harbor elections.
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3You can get a blank Form 8990 by opening our fillable version in your browser. Our editor lets you add the necessary information directly to the fields, save your entries, and download the finished PDF whenever you are ready.
Yes, you can submit Form 8990 electronically, because it is filed as an attachment to your income tax return rather than on its own. Your tax software or preparer includes it when transmitting the return. If you file on paper instead, print the completed form and mail it together with the rest of the return.
If your Form 8990 is missing information, the IRS may treat the related return as incomplete and ask you to correct it. Before filing, check each line against the Form 8990 instructions, compare your entries with a Form 8990 example, and attach any statements required. Partners and S corporation shareholders must complete Schedule A or B before Part I.
Yes, you can fill out Form 8990 online in our editor. Open the form, type your figures into each field, review the calculations against the IRS instructions, and download the completed PDF. You do not need to install any software, and you can change any field again before you print it or attach it to your return.
Yes, the form itself is free. We won’t charge a fee for opening and editing the form. However, you need to opt for a paid subscription plan if you decide to download it to your device.
Yes, you can correct mistakes on Form 8990. After filing, you can generally submit an amended return with a corrected version attached. Partnerships subject to the centralized partnership audit regime generally must use an administrative adjustment request (AAR) instead.
The IRS does not process Form 8990 on its own. It is reviewed together with the return it is attached to, so processing time depends on that return and on how it was filed. If you need an update, check the status of your return through the IRS rather than looking for a separate Form 8990 status.