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line 7 on form 8960 should include 1040 schedule 1, line z8! But Turbotax does not do that! . I think it is possibelly a software bug in the desktop version. (I do not know about the online version.) Here is the instruction from IRS: "Instructions for Form 8960 (2025) ... Line 7—Other Modifications to Investment Income Use line 7 to report additional NII modifications to NII that aren’t otherwise specified on lines 1–6. For example, use line 7 to report additions and modifications to NII, such as the following. Section 1411 net operating loss (NOL) (enter as a negative amount). See Section 1411 NOL, later. Any deductions described in section 62(a)(1) that are properly allocable to a passive activity or trading business, but aren’t taken into account on line 4a or 5a (enter as a negative amount). See Other section 62(a)(1) deductions, later. Adjustments for distributions from estates and trusts. See Distributions from estates and trusts, later. Section 404(k) dividends reported on line 2 (enter as a negative amount). See Line 2—Ordinary Dividends, earlier. Interest income reported on line 1 received from certain nonpassive activities (entered as a negative amount). See Self-charged interest, later. Recoveries of deductions taken on a prior year’s Form 8960. See Deduction recoveries, later. Other items of NII (or properly allocable deductions) not otherwise included on Form 8960 reported on Schedule 1 (Form 1040), line 8z; Form 1041, line 8; Form 1041-QFT, lines 4 and 9; and Form 1040-NR, amount on statement reporting tax items for your period of U.S. residency corresponding to Schedule 1 (Form 1040), line 8z."