Final K-1 from a trust shows non-miscellaneous itemized deduction for state tax. How do I capture this amount in beneficiary's Schedule A? (Turbotax Deluxe)

[HOLLYIOWA]

Should this be entered in the Estimates and Other Taxes Paid area?   If so, where?

[ColeenD3]

You might be able to get a federal deduction for state or local income taxes you paid in 2021, even if they were for an earlier tax year.

To get this deduction, you'll need to itemize. There's a cap on the SALT deduction (state and local tax) which may limit the amount you can deduct.

Nevertheless, you should enter these payments and we'll figure out if they're deductible or not:

1. With your tax return open, search inside your program for taxes paid.
2. Select the Jump to link at the top of your search results. This takes you to the Estimates and Other Income Taxes Paid screen.
3. On this screen, select Start or Update next to the appropriate topic under the heading which applies to your situation:
   • Estimated Tax Payments to enter 2020 or 2021 state/local estimated payments
   • Payments With Extension to enter 2020 or 2021 state/local payments you made with your state or local extension
   • 2020 Refund Applied to 2021 if you applied any portion of last year's state/local refund to this year's state or local return
   • Other Income Taxes Paid in 2021 if you paid 2020 or earlier state/local taxes

[Anonymous_]

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@HOLLYIOWA wrote:
Should this be entered in the Estimates and Other Taxes Paid area?   If so, where?

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You need to know the exact nature of the deduction(s). If the figure was indeed for state income tax, then the figure would be entered as such on Schedule A.

The trustee (or whomever prepared the return and issued the K-1) should have included a detailed statement.