For 2018 tax returns, this item was reported on Schedule 1 as an extra deduction that then flowed forward as part of final Adjusted Gross Income (AGI).
For 2019, this deduction is simply part of the overall Section 199A computation and is only reported on Line 38 of Part IV on page 2 of Form 8995-A. The final deduction amount listed on 39 then flows forward to line 10 on Form 1040 which is the last number before taxable income.
Remember that unlike last year, the DPAD does not reduce AGI and therefore, certain items based on AGI such as Health Insurance Credit reconciliation, Medical Expense deduction may be adversely affected by this difference.
We are showing the pertinent part of Form 8995-A (highlighted in yellow) but be aware that this form is still not final by the IRS (at least based on the IRS website). We will keep you posted.
