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maryha
New Member

Schedule K-1 form 1041 box 11 final year Deductions was entered but it is not showing as a deduction on my 1040.

 
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tagteam
Level 15

Schedule K-1 form 1041 box 11 final year Deductions was entered but it is not showing as a deduction on my 1040.

"Schedule K-1 form 1041 box 11 final year Deductions was entered but it is not showing as a deduction on my 1040."

TurboTax is following the instructions for Schedule A and, apparently, Notice 2018-61 (see links below), both of which indicate that excess deductions on termination (Line 11A of your K-1) constitute miscellaneous itemized deductions and, as such, are no longer deductible as a result of the TCJA (Tax Cuts and Jobs Act).

The IRS solicited comments on its position and indicated it would take the comments and recommendations into consideration prior to making a final decision on the matter and issuing regulations. However, to date no regulations have been issued. Since it appears as if you are using a desktop version of TurboTax, you can do an override on Line 16 of Schedule A but you will have to print and mail your return if you do so.


Sch A instructions: https://www.irs.gov/instructions/i1040sca#idm140545382987696

Notice 2018-61: https://www.irs.gov/pub/irs-drop/n-18-61.pdf

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1 Reply
tagteam
Level 15

Schedule K-1 form 1041 box 11 final year Deductions was entered but it is not showing as a deduction on my 1040.

"Schedule K-1 form 1041 box 11 final year Deductions was entered but it is not showing as a deduction on my 1040."

TurboTax is following the instructions for Schedule A and, apparently, Notice 2018-61 (see links below), both of which indicate that excess deductions on termination (Line 11A of your K-1) constitute miscellaneous itemized deductions and, as such, are no longer deductible as a result of the TCJA (Tax Cuts and Jobs Act).

The IRS solicited comments on its position and indicated it would take the comments and recommendations into consideration prior to making a final decision on the matter and issuing regulations. However, to date no regulations have been issued. Since it appears as if you are using a desktop version of TurboTax, you can do an override on Line 16 of Schedule A but you will have to print and mail your return if you do so.


Sch A instructions: https://www.irs.gov/instructions/i1040sca#idm140545382987696

Notice 2018-61: https://www.irs.gov/pub/irs-drop/n-18-61.pdf

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