Miscellaneous Investment Expenses

[francav]

How do I enter miscellaneous investment expenses (such as computer programs or magazines) in Turbo Tax Premier 2021?  Neither the Other Investment Expenses category in Retirement and Investments nor the Other Deductible Expenses in Other Deductions and Credits has a place for them in 2021.  There is a reference in the Other Investment Expenses category on the page to Enter Investment Expenses that says they should be entered in the Other Deductions group but there is no place to do so there. 

[Opus 17]

Investment expenses (except for interest on loans used to purchase investments) are not deductible for tax years 2018-2025, following the tax reform law of 2017.  They used to be miscellaneous itemized deductions subject to the 2% rule, which meant that taxpayers rarely got a tax reduction from listing them in any case, due to the 2% rule and the requirement to itemize.

They are still able to be listed because some states allow the deduction, you list them under federal and they flow to the state if your state allows it.  It will be other "miscellaneous itemized deductions" on the deductions and credits page. 

[francav]

The "Other Deductions and Credits" category does not currently have a ""miscellaneous itemized deductions" tab in my current Turbo Tax Premier 2021.

[ThomasM125]

You will see an option to enter your investments expenses in the Other Deductions and Credits section, and then Other Deductible Expenses in TurboTax.

[francav]

In my current version of Turbo Tax Premier 2021, when I go to the Other Deductions and Credits Section and then to Other Deductible Expenses, I first get a page regarding generation skipping taxes and then a page with five boxes none of which is for miscellaneous expenses (such as computer programs or advice subscriptions).  The five boxes all deal with deductions not limited previously by the 2% rule such as Estate Tax Deductions,  unrecovered investment in pension, etc.  I am hoping that this omission will be fixed in an update.

[Opus 17]

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@francav wrote:

In my current version of Turbo Tax Premier 2021, when I go to the Other Deductions and Credits Section and then to Other Deductible Expenses, I first get a page regarding generation skipping taxes and then a page with five boxes none of which is for miscellaneous expenses (such as computer programs or advice subscriptions).  The five boxes all deal with deductions not limited previously by the 2% rule such as Estate Tax Deductions,  unrecovered investment in pension, etc.  I am hoping that this omission will be fixed in an update.

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Are you sure?  Check again.  This photo is from the online version, but the online and desktop version are usually identical.  This is the first screen after generation skipping taxes.

[francav]

Yes, I am sure.  I checked again as you advised.  The photo you posted from the online version is not the page I get after I say I did not pay generation skipping taxes.  Instead, the page I get is:

I hope they will fix this in an update so that the online and desktop versions will match and allow for the entry of those miscellaneous deductions.

[Opus 17]

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@francav wrote:

Yes, I am sure.  I checked again as you advised.  The photo you posted from the online version is not the page I get after I say I did not pay generation skipping taxes.  Instead, the page I get is:

I hope they will fix this in an update so that the online and desktop versions will match and allow for the entry of those miscellaneous deductions.

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I can check the Mac version tonight, it should again be the same as the windows version, but I don't have a PC.  The screen to enter itemized deductions subject to the 2% rule should come before the screen to enter itemized deductions not subject to the 2% rule. 

[francav]

Thanks.  Please let me know what you find on your Mac.

[Opus 17]

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@francav wrote:

Thanks.  Please let me know what you find on your Mac.

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As of last night, the Mac version had the appropriate screen in the right place.  (The entries for investment expenses and other miscellaneous itemized deductions subject to the 2% rule comes after the generation skipping tax and before the deductions not subject to the 2% rule.)

I will see if I can get any expert PC users to look at your situation. 

[rjs]

@francav 

I have Premier on a PC, and I get the same screen for entering investment expenses that Opus 17 gets on the Mac and online. It does not skip that screen.

Please make sure that your software is updated. There is a new update today. On the Online menu click "Check for Updates." Install any updates that it finds, then see if you still have the problem.

[jeffecohen]

Opening poster @francav  is correct. There is def something weird going on here - the entry screen is missing.

I have the Win (not online) TT Deluxe version (fully up-to-date) , and I also am not presented with the screen to enter the misc. expenses. I've used this screen for years and I know exactly where to find it. The "Other Deductible Expenses" used to present 3 entry screens - Generation Skipping Taxes, Less Common Expenses and Other Expenses. The misc. investment expenses are entered in the second, and it's no longer there. I had, in fact, already made some entries in December, and now I can't edit them bc I can't get back there. Somewhere along the way, one of the TT updates removed access to the Less Common Expenses entry screen.  NYS allows a deduction for these expenses, so I need access. I can edit them directly on the forms, but prefer not to. I'd also like to confirm that this is a glitch and not a deliberate change in TT due to a change in NYS tax law regarding these deductions.

[DoninGA]

@jeffecohen 

You do not see this when accessing the Deductions & Credits section and scrolling down to the bottom of the page?

[Opus 17]

@DoninGA 

I think the problem is that of the 3 pages that are supposed to be under that topics (generation-skipping taxes, miscellaneous itemized deductions subject to the 2% rule, and other itemized deductions not subject to the 2% rule, the middle page (2% deductions) is missing.

@jeffecohen 

There is no change to NY law and even if there was, it wouldn't flow backwards to alter the Federal workflow.

Some other experts here have verified that their copies of Turbotax for Windows have the correct page.  I can only think that you have a problem specific to your installation.  I suggest making a backup copy of your tax data file in a safe place, then uninstall and reinstall the program.  It might also be interesting to find the appropriate worksheet in Forms mode and verify it is still there, even if you don't want to use forms mode for your official tax return.

Since we don't have the problem, it's hard for us to diagnose. 

[jeffecohen]

@Opus 17 

Your reply to @DoninGA describing the problem is correct.

The entries I made in Dec. are on the forms, both Fed Misc. Itemized Deductions Worksheet Schedule A Lines 16 (line 26b) and NYS IT-196 Resident Itemized Deductions (line 24). I can also see the total of the entries (in blue) on the TT step-by-step Fed 2021 Deductions and Credits main page, Other Deductions and Credits line, 2021 column. Clicking on the total displays all the entries, as it should. I did a test entry into the Itemized Deductions Worksheet Fed Sched A form, and it correctly flowed through to NY IT196 and displays on the step-by-step page as well. It's a GUI problem in the step-by-step, but the program logic appears to be good.

I first noticed it a couple of weeks ago, but figured it would be fixed in an update. Hasn't happened. It's bizarre that its only happening to some of us and not others, so I hope they fix it soon. Folks who aren't comfortable working with the forms are gonna be flummoxed, or may miss it altogether and lose some deductions.