Form 8903


(4.7 / 5) 31 votes
Form 8903 - Thumbnail

Get your Form 8903 in 3 easy steps

  • 01 Fill and edit template
  • 02 Sign it online
  • 03 Export or print immediately

What is IRS Form 8903?

Form 8903 is a document used to calculate and claim the Domestic Production Activities Deduction. This tax deduction, available to a wide range of US businesses, could save you a significant sum if your business qualifies. The IRS Form 8903 allows businesses to reduce their taxable income by a percentage of their qualified production activities income.

Form 8903 Screenshot

Who can use the 8903 form?

You might wonder, "Am I eligible to use the 8903 Form?" The answer largely depends on the type of business you own and operate. Typically, manufacturers who produce goods within the United States are eligible. However, this can also extend to architects, engineers, software developers, and even film producers, as long as a substantial portion of their work is performed within the US.

How to Fill Out Federal Form 8903?

Tax form 8903 might seem daunting at first glance, but breaking it down into steps can help simplify the process.

Identify Your Qualified Production Activities Income (QPAI)

This is the net income from your domestic production activities. Deduct the cost of goods sold and other expenses from your gross receipts to determine your QPAI.

Calculate the Deduction

Once you have your QPAI, the next step in completing the IRS Form 8903 is calculating the deduction. This is generally 9% of the lesser of your QPAI or taxable income.

Complete the 8903 form

Fill out the form, following the instructions carefully. Remember to include cooperative dividends, oil-related QPAI, and allocated W-2 wages.

Always ensure you're in line with the current tax laws. The IRS regularly updates its procedures and policies, so it's crucial to double-check any changes that may affect your eligibility or how you fill out form 8903.

What people say

  • Fred Walters
    Now that I’ve switched from Word to PDFLiner, I save lots of time processing and digitally distributing tons of billing forms, work orders, forecast reports, and invoices. In addition to this, thanks to PDFLiner, we’ve significantly minimized our paper consumption. Excellent tool that helps me cope with my business workflow faster and easier.
  • Peter Scheffel
    Self-employed attorney
    PDFLiner allows me to streamline the processes of generating and managing legal documents, as well as collecting electronic signatures for all my contracts and agreements. I like that I can customize forms on the go and access PDFLiner from all my gadgets. No more printing or scanning! That’s just brilliant!
  • Lisa Matthews
    University student
    When you’re a student, you deal with PDFs a lot… Newsletters, various worksheets, official forms you need to fill in and sign, etc… To me, filling out a PDF form used to be among the trickiest and most time-consuming things ever. But then a friend of mine introduced me to PDFLiner, and oh my God, my life has changed since then. It’s easy to use and has so many great features. Just awesome, I love it!
Fillable online Form 8903
(4.7 / 5) 31 votes
Please, wait...
We use unpersonalized cookies to keep our site working and collect statistics for marketing purposes. By continuing to use this site, you consent to this policy. Learn more