Sch K-1, 1041, Line 11A

[Temecularevev]

Received 2019, Sch K-1, Form 1041, from estate CPA. I am a beneficiary. Box 11A shows Final year Deduction of $36,000. CPA states this is a Miscellaneous Deduction, Line 16, not subject to the 2% limitation. How do I make this entry in Turbo Tax? I'm using Turbo Tax Deluxe.

[JamesG1]

Schedules K-1 are not supported in TurboTax Deluxe.  Schedules K-1 are supported in Premier or Self-Employed.

To enter Schedule K-1 Estates or trusts information, follow these steps.

• Down the left side of the screen, click Federal.
• Across the top of the screen, click Income & expenses.
• At the screen Your Income and expenses, scroll down to Schedule K-1.
• Click on Edit / Add to the right.
• At the screen Tell us about your schedule K-1, click Update to the right of Estates or trusts (form 1040).
• Enter information about the schedule K-1.  Continue through several screens.
• At the screen Check boxes that have an amount click the box 11.  Click Continue.
• At the screen Enter box 11 info, enter the correct values.

[Temecularevev]

Thanks for the reply/answer. But I can not find anyway to upgrade from Deluxe. All the "Helps" say there should be an "Upgrade" link when I'm at my tax return. Using Windows, full screen. Any suggestions?

[tagteam · Accepted solution]

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@Temecularevev wrote:

CPA states this is a Miscellaneous Deduction, Line 16, not subject to the 2% limitation. How do I make this entry in Turbo Tax? I'm using Turbo Tax Deluxe.

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Miscellaneous deductions were eliminated upon the passage of tax reform (TCJA). The only line on which to enter a Schedule A deduction would be Line 16 and the IRS instructions limit the deductions on that line to those listed below.

• Gambling losses (gambling losses include, but aren't limited to, the cost of non-winning bingo, lottery, and raffle tickets), but only to the extent of gambling winnings reported on Schedule 1 (Form 1040 or 1040-SR), line 8.

• Casualty and theft losses of income-producing property from Form 4684, lines 32 and 38b, or Form 4797, line 18a.

• Federal estate tax on income in respect of a decedent.

• A deduction for amortizable bond premium (for example, a deduction allowed for a bond premium carryforward or a deduction for amortizable bond premium on bonds acquired before October 23, 1986).

• An ordinary loss attributable to a contingent payment debt instrument or an inflation-indexed debt instrument (for example, a Treasury Inflation-Protected Security).

• Deduction for repayment of amounts under a claim of right if over $3,000. 

• Certain unrecovered investment in a pension.

• Impairment-related work expenses of a disabled person.

See https://www.irs.gov/instructions/i1040sca#idm140577498784400

If your CPA is insistent that the expense is deductible on Line 16 of Schedule A but it does not fit into one of the enumerated categories (perhaps it is deductible as a Section 212 expense), then you can enter that expense directly on Schedule A in Forms Mode, which mode is only available in the desktop products, not in the online versions.

[sparkydj]

I use Turbo Tax Premier desktop.  When I entered the data from the Schedule K-1, I received from Mother's estate, line 11A ended up as income on 1040 line10.  I e-filed my taxes before I realized this was not correct.  Now I need to amend my 2022 return, but cannot find the place to make this amendment.

[PatriciaV]

@sparkydj

Form 1040 Line 10 comes from Schedule 1 and is the total of all adjustments to income. Are you certain the amount from Schedule K-1 Box 11 Code A should not be reported on Schedule 1 under Other adjustments?

Additional info: How to Amend (Change or Correct) a Return You Already Filed

[tagteam]

Line 11A represents Section 67(e) expenses and should most likely wind up on Line 24k of Schedule 1.

[sparkydj]

Line 24k is where it is on my 1040.  However, it came over as an addition to my income.  According to Turbo Tax website, it should be a deduction from my income.  The website also states that the laptop program was not corrected when the the government decided to allow this as a deduction on estate beneficiary's taxes.  This is why I need to amend my return.

[tagteam]

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@sparkydj wrote:

Line 24k is where it is on my 1040.  However, it came over as an addition to my income. 

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There must have been another income item on the K-1 (or elsewhere).

On a test return, the figure on Line 11A appeared on Line 24k of Schedule 1; there was no figure on Line 10.

[sparkydj]

There was also a deduction 11D on the estate K-1.  It came over to 1040 as a negative amount.

[tagteam]

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@sparkydj wrote:

There was also a deduction 11D on the estate K-1.  It came over to 1040 as a negative amount.

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That is a long-term capital loss carryover which should appear on Schedule D.

[sparkydj]

Yes, that is where 11D is.  I have not found on Turbo Tax amending return to make the correction to have 11A be a deduction for amending return.

[sparkydj]

@JamesG1

I use Premier for laptop/disc.  The program does not put the K-1 line 11A in the 1040's form as a deduction.  I didn't realize this until after I had already filed my return.  Turbo Tax laptop will not let me amend my return to show 11A as a deduction.  Right now, I am disappointed in Turbo Tax laptop.  Just thought I would let you know.