Form 8960, Line 9b - Worksheet

4 replies
90 views

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?

user17715453417Author

Level 2

Can we get a reply for this question?

Does the calculation for 9b require an update? Will the override mess up anything else?

DaveF1006

Alumni - Intuit

Instead of overriding the form, try going through the Net Investment Income Tax interview again. Watch for a screen that asks, “Do you have any additional modifications or deductions for Form 8960?” You can usually enter a manual adjustment there, which will flow to Line 9b and keep the electronic links intact.

Property taxes on Line 9b are now directly supported by the instructions. As long as you have documentation—like Schedule A showing the paid taxes—and a reasonable method for your allocation percentage, this entry is considered low risk.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

user17715453417Author

Level 2

Thank you, DaveF.

Unfortunately, I can't find this question, at least not in my Premier Desktop version. I went through:
- Other Tax Situations > Additional taxes and repayments, but it has only specific boxes for various recaptures, installment sales, etc., but no question or free-form entry for "additional modifications."
- Other Tax Forms > Miscellaneous tax forms... The "Learn More" link claims that it covers 8960, but the actual interview questions also don't add anything else.

- I even tried deleting 8960 altogether, but the program just recreated it without triggering any additional interview questions.

Looks like I have to do this in Forms view after all (in the 8960 worksheet, not the form itself). Thankfully that was easy enough, which I appreciate about TurboTax. But it would be nice if this were automatic in next year's version.