The IRS instructions on this have changed for 2025, and now EXPLICITLY say to include property taxes and personal property taxes:
"Include state, local, and foreign income taxes you paid for the tax year that are attributable to NII. Include also state, local, and foreign real property taxes paid for the tax year, as well as state and local personal property taxes paid that are attributable to NII.
That second sentence is new, was not in prior years' instructions.
However, when I use Turbotax (Premier), the 8960 Worksheet is still using only my state income tax from Schedule A, line 5a, but I believe it should be the total from line 5d. (No limitations apply, in this case, I'm coming in just under 40k).
Is the worksheet wrong, or am I missing some other nuance? Are you going to update this? And if I override this in my return, will it wreak havoc with the error checking routines, or throw up some other red flags?
