Form 1116, line 3a, says to include lines 4, 5a, and 5b from Schedule A. TurboTax is also including 5c. Is this an error in the program? The form's instructions say:Enter the following itemized deductions from Schedule A (Form 1040)) on line 3a:Medical expenses (line 4)General sales taxes (line 5a)Real estate taxes for your home (line 5b).Line 5c, "State and local personal property taxes," is not listed, but the app is definitely including it.

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Anonymous

Question

Error in Form 1116 Calculation?

Forum|Forum|3 years ago
February 11, 2023
1 reply
2 views

Form 1116, line 3a, says to include lines 4, 5a, and 5b from Schedule A. TurboTax is also including 5c. Is this an error in the program?

The form's instructions say:

Enter the following itemized deductions from Schedule A (Form 1040)) on line 3a:

Medical expenses (line 4)
General sales taxes (line 5a)
Real estate taxes for your home (line 5b).

Line 5c, "State and local personal property taxes," is not listed, but the app is definitely including it.

Anonymous

Well, since nobody seems to have any insight into this, and since I'm still convinced that TT has it wrong, and since the personal property tax figure is pretty small, I overrode the program, removed that figure, recalculated my taxes, and filed the corrected version.

If I'm right, I've saved myself the hassle of filing an amended return. If I'm wrong, I've lost a few bucks that I'm not going to worry about. Since the only way to find out for sure is to pay Intuit a lot of money for the privilege of pointing out a bug to them, which I'm adamantly opposed to doing, I consider this matter settled.

DawnC

Level 15

You are correct and this issue will be corrected in an upcoming software update. Personal property taxes will not be included on Line 3a of Form 1116 as the IRS instructions do not include property taxes on that line. I am glad you avoided the hassle of an amended return and removed that amount from your return; thank you for providing the information!

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