JoannaB2
Expert Alumni

Deductions & credits

The form 8960 is used to report net investment tax for individuals, estates, and trust.  You must enter the state and local taxes paid on Schedule A (Itemized Deduction), then the state and local taxes will be transferred over to form 8960  Part 2, line 9B. Otherwise,, you can't use taxes as investment expenses allocable to investment income.