Screen A - Itemized Deductions (1040)

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IRS filing deadline update

The IRS MeF system is now processing returns, and the filing deadline has been extended to 11:59 PM on Wednesday, April 18, 2018. For the latest details, see UltraTax CS alerts and notices.

Overview

Information in Screen A transfers to Schedule A. Make sure that the information you enter in this input screen does not duplicate deductions that you have entered elsewhere.

Notes

  • The application automatically calculates the Itemized Deductions Worksheet to determine the allowable deduction when the AGI exceeds the applicable limitation.
  • Electronic filing: If you are filing this return electronically, there are data-entry guidelines you need to follow to prevent the return from being rejected. For details, see Field size limitations for 1040 electronic filing and Form limitations for 1040 electronic filing.
  • For Delaware returns, itemized deductions are allocated based on the entry of T, S, or J for each item. If left blank, deductions are allocated to the taxpayer.
  • To force Schedule A to print if it has data and whether or not it is required, choose Setup > 1040 Individual. Click the Tax Return button in the Collation group box. Click the Pages that can be forced to print option in the Focus group box at the top. Choose the collation (Government, Client, or Preparer) that you want to modify. Choose Schedule A, and then mark the Always if data option. Click OK when done.
  • Many statements include a State field. If you are processing a state return, enter a state postal code for proper state processing. Press F4 from this field to view a list of available state postal codes. See State fields in UltraTax/1040 for more information.
See also

Source data entry

The UltraTax CS Source Data Entry utility enables you to enter data on facsimile versions of forms your clients submit for the preparation of their tax returns. Once the facsimile forms are completed, you can export the data to UltraTax CS and transfer it into your client data files via the data sharing feature. For more information including a list of available facsimiles, see UltraTax CS Source Data Entry overview.

Medical Expenses

Enter medical expenses in this section.

Use the attached statement to enter any medical and dental expenses. A custom fieldview is available in the attached statement.

The following amounts are automatically subtracted from the total medical and dental expenses on Schedule A, line 1.

  • Qualified PSO exclusion entered on Screen 1099R (when health insurance premiums are entered on Screen 1099R)
  • Amounts from Form 8885, line 4
  • Net marketplace premiums in excess of the calculated premium tax credit (PTC) and self-employed health insurance deduction (if applicable), including any repayment of excess advance premium tax credit (APTC).

Use the statement attached to these fields to enter medical insurance premium expenses not entered elsewhere. Medical insurance premiums entered in Screens SSA-1099, 1099R, W2 (non-shareholder), and K1-3 also transfer to Schedule A. Amounts you enter in the statement are added to amounts entered elsewhere. A custom fieldview is available in the attached statement.

UltraTax/1040 Georgia users only: In the attached statement, enter GA and state use code 5 to identify qualified high-deductible health insurance premiums for an adjustment to Georgia income. The application calculates the adjustment based on the amount excluded from federal itemized deductions due to federal limitations, and transfers the adjustment to GA Form 500.

UltraTax/1040 Wisconsin users only: In the attached statement, enter state code WI in the State field. A list Wisconsin-specific state use codes will become available in the State Use field. Select the applicable state use code for proper treatment of insurance premiums.

Code Description Treatment
1 Premiums paid while not employed or self-employed: WI Used to complete the Medical Insurance Worksheet, Worksheet 2 - Others, line 1. Amounts with code 1 will be multiplied by 33.4 percent.
2 Employee paid premiums, employer did not contribute: WI Used to complete the Medical Insurance Worksheet, Worksheet 2 - Others, line 5.
3 Self-employed health insurance premiums: WI Used to complete the Medical Insurance Worksheet, Worksheet 1 - Self-Employed Persons.
4 Employee paid premiums, employer did contribute: WI Used to complete the Medical Insurance Worksheet, Worksheet 2 - Others, line 3.

Use the attached statement to enter eligible long-term care insurance premiums paid on behalf of the taxpayer, spouse, and/or dependents not entered elsewhere. Long-term care premiums entered in Screens C, F, K1-3, and OtherAdj not allowed as a deduction on Form 1040, line 29 also transfer to Schedule A, and any remaining limitations are applied.

Codes are available within the statement to identify for whom the premium was paid. The application then verifies the age of the taxpayer or spouse from the date of birth information that you entered in Screen 1040. For premiums paid on behalf of dependents, choose code 3, 4, 5, 6, or 7. The application limits each entry as required. See the following limitation table.

Age Limitation
40 or under $390
41-50 $730
51-60 $1,460
61-70 $3,900
71 or older $4,870

If you enter an amount in the field only and not in the attached statement, the application defaults to the age of the taxpayer for purposes of applying the limitation. If you select J from the T, S, J fieldview, the application splits the premium amount equally between the taxpayer and spouse and applies the appropriate limitation based on their respective dates of birth.

Notes

  • If no date of birth exists for the taxpayer or spouse, no deduction is calculated.
  • If you enter long-term care premiums for the taxpayer or spouse into multiple activities, the application limits the total deduction to the maximum allowed based on the age of the taxpayer and spouse at the end of the year. However, the application cannot limit the deduction for dependents if the data is entered for multiple activities. Therefore, if you enter dependent data in multiple activities, you should not enter more than the allowable limit for each dependent based on their age. Review the limits shown above. This does not apply if data is entered for only one activity.

Use the statement attached to these fields to enter prescription drug expenses. Some states require this information. Also, note that a custom fieldview is available in the attached statement.

Enter the number of miles driven for medical purposes. The application calculates the allowable deduction.

Note: Because this field is a non-standard amount field (i.e. not a standard dollar amount type), custom statement attachments should not be added to this field, as doing so will cause the amount to be omitted from the return calculation.

Use the statement attached to this field to enter medical expenses paid on behalf of a decedent within one year following the date of death. Making this tax election waives the right to deduct the same medical expenses for the estate tax purposed under IRC Section 2053. The application prints the descriptions and amounts entered in this statement in a tax election that prints with the return. If the return will be filed electronically, the tax election will be included in the electronic file.

Notes

  • If you make this election in Screen A, do not make the same election in Screen Elect in the Elections folder, as duplicate elections may print. Expenses entered in the statement do not automatically transfer to the Schedule A.
  • Medical expenses to be included in the calculation of itemized deductions should be entered separately in the Medical and dental expenses field in Screen A.

Tax Expenses

In this section, enter state and local income tax amounts not entered elsewhere and general sales tax information.

Use the statement attached to these fields to enter the taxpayer's state and local taxes paid to complete the Taxes You Paid section on Schedule A.

Please note that the application transfers state and city withholding information to Schedule A from the following locations:

Screen ID Field description(s)
StPmt Other withholding
1099R

State W/H (box 12)

Local W/H (box 15)

School dist W/H

1099M State W/H (box 16)
4835 Income from production - State W/H
B&D and Broker

Interest income - State W/H

Dividend income - State W/H

C

Gross receipts and sales - State W/H

Other income - State W/H

F Farm income - State W/H
Income

Unemployment compensation received - State W/H and/or Local W/H

Other income - State W/H

K1-4

State income tax withheld

Local income tax withheld

K1T (Grantor Trust) State and local taxes
K1T-2 Credit for state backup withholding
Rent

Rents and royalties - State Withholding

Taxes - State income & Local income taxes

SSA-1099

SSA-1099 State withholding

RRB-1099 State withholding

W2

State W/H (box 17)

Local W/H (box 19)

School dist W/H

Box 14 state-specific amounts (see Screen W2 help for more information)

W2G

State W/H (box 14)

Local W/H (box 17)

Amounts entered in this field are added to amounts entered elsewhere. A supporting statement prints with the return to show an itemization of all amounts reported on Schedule A, line 5. Note that the application automatically enters the greater amount of sales taxes or state and local income tax on Schedule A, line 5. A diagnostic message is produced indicating which method is used, either state and local income tax or general sales tax. A custom fieldview is available in the attached statement.

Note: State withholding amounts from Screen K1-4 may be limited by basis and/or at-risk. K-1 basis and at-risk adjustments will print in the supporting statement for Schedule A, line 5, when applicable.

Note: Use code 5 (Mineral withholding) in conjunction with the appropriate postal code to designate withholding for Utah returns (Form TC-675R Mineral withholding), Montana mineral royalty withholding, New Mexico withholding sourced from oil and gas, and Oklahoma royalty withholding.

Enter any income tax payments made in 2017 for 2016 income taxes in the attached statement. Amounts entered here are combined with estimated tax payments entered in Screen St Pmt. A custom fieldview is available in the statement attached to this field.

Note: During the proforma process, the application automatically retrieves various prior-year state, and city amounts that are needed for the calculation of the 1040 return if the client was processed in last year's version of the application. Examples include the prior-year balance due, total of extension payments, overpayments applied, and refund.

Use the statement provided to enter the amounts paid for real estate taxes not included elsewhere. The personal portion of real estate taxes from Form 8829 or the Business Use of Home Worksheet, the personal portion of real estate taxes from Schedule E, Page 1, and real estate taxes in Screens K1-3, K1T (Grantor Trust) transfer automatically to Schedule A. A custom fieldview is available in the attached statement.

The following describes some fields that appear in the attached statement.

  • Code: Enter 1 to identify real estate tax amounts paid on a principal residence. For all other real estate taxes paid, enter 2.
  • Do Not Proforma: Enter X to delete the item on next year's proforma.

Notes

  • Real estate tax amounts from Screen K1-3 may be limited by basis and/or at-risk. K-1 basis and at-risk adjustments will print in the supporting statement for Schedule A, line 6, when applicable.
  • Real estate taxes reported on Schedule A, line 6 may be reduced (but not below zero) by the buyer's part of real estate taxes (Form 1099-S Box 5) identified with code 1 (Real estate taxes paid; reduce real estate taxes deducted) on Screen Sale or Screen Home. A diagnostic message is issued when reimbursements of tax exceed the total real estate taxes paid.
  • New Jersey returns: Items entered with code 2 are not included in the calculated tax paid on a principal residence for property tax deduction, credit, or reimbursement.
  • Indiana resident and part-year resident returns:

    Use "Code" 1 for property tax payments that qualify for the Indiana homeowner's residential property tax deduction on Indiana Schedule 2 or Schedule C.

    Use both Code 1 and State Use 1 for property tax payments that qualify for the Indiana Lake County Credit on Indiana Schedule 5 or Schedule F.

Enter amounts paid for personal property taxes not entered elsewhere. Personal property taxes from Screens Auto and Rent transfer to Schedule A. The personal portion of personal property taxes from the Form 2106 SBE Worksheet that would otherwise be disallowed transfer automatically.

Use the statement attached to these fields to enter the amounts paid for other taxes not included elsewhere. Deductible foreign taxes from Screens 1116 and K1T (Grantor Trust); state disability insurance withholding not included on Schedule A; and unemployment insurance withholding from Screen W2 also transfer to Schedule A. A custom fieldview is available in the attached statement.

Note: Foreign tax amounts from Schedule K-1 (1065/1120S) may be limited by basis and/or at-risk. K-1 basis and at-risk adjustments will print in the supporting statement for Schedule A, line 8, when applicable.

Use this field to select the appropriate state postal code to determine the general sales tax table value. The application automatically defaults to the state postal code entered in the Residential Information section in Screen 1040. The state postal code and number of exemptions reported on Form 1040 are used to determine the corresponding table value as published in the Schedule A instructions.

Notes

  • To turn off the application default for the Resident state/rate field for all clients, choose Setup > 1040 Individual, click the Other Return Options button, and clear the Use state postal code from Screen 1040 for Schedule A General Sales Tax calculation checkbox.
  • Use the statement for the Resident state/rate field only for full-year resident states when local sales tax is not applicable. Use the Additional state/locality information statement if you are a part-year resident or pay a separate locality tax rate in addition to the state rate.

Use the statement attached to this field to enter any additional information necessary for the application to calculate the General Sales Tax deduction when any of the following apply.

  • Part-year state resident
  • Part-year local resident
  • Local sales tax

When this statement is used, the application produces the General Sales Tax Deduction Worksheet.

Custom fieldviews are available in the attached statement. For more information on custom fieldviews, see What is a "custom fieldview"?

The information that follows describes some of the fields that appear in the attached statement.

  • Type Code: In the Type Code field in the attached statement, enter the code to indicate part-year state or local residency.

    Notes

    • Type code 3 identifies this item as a part-year state resident for the General Sales Tax Table calculation. Items with this code are used to complete lines 6 through 8 of the General Sales Tax Deduction Worksheet. If the same dates of residency apply for both a state and a locality within that state, they can be entered on the same line using this code.
    • Type code 4 identifies this item as a part-year local resident. Use this code when a full-year residency applies for the state, but not the locality. When this code is used, lines 16 through 18 of the General Sales Tax Deduction Worksheet will be completed. However, the state portion of the worksheet (lines 6 through 8) will be completed using a period equivalent to a full year.
  • State (Required): A postal code must be entered for each item. The list of postal codes displays the appropriate state sales tax rate to the right of the postal code.
  • State Rate: When a postal code is selected in the State field, the application will automatically enter the state sales tax rate in this field. You can also enter a different state sales tax rate in this field. The rate in this field is used on line 13 of the General Sales Tax Deduction Worksheet for the calculation of the local sales tax amount.
  • Date From Part-Yr / Date To Part-Yr: Enter the dates (MM/DD/YY) of residency to prorate the state and local sales tax amounts. If no type code has been entered, the application assumes both the state and locality were part-year residences.
  • No. of Days: This field is completed automatically if information has already been entered in the Date From (PY) and Date To (PY) fields. The number of days displayed in this field will be used on line 6 and/or line 16 of the General Sales Tax Deduction Worksheet.
  • Locality Name & (Rate) (x.xxx): Enter the name of the locality followed by the local sales tax rate in parenthesis. For example, enter New York City (4.250). By entering the local sales tax rate in parenthesis after the locality name, the application automatically populates the Local Rate field. A state-specific custom fieldview is attached to this field. By adding the locality name and rate in the custom fieldview, you only need to enter the locality name and local sales tax rate once. The most recent postal code entered activates that state's specific list of localities. If the statement is closed before the locality information is entered, it may be necessary to re-select the state to activate the applicable list of state localities.

    Tip: When you enter information for more than one state, it is best to enter all the information applicable to a specific state consecutively. The most recent state selected in the State (Required) field activates that state's specific Locality Name & (Rate) custom fieldview. For example, when you select CA as the postal code, you will activate the custom fieldview that contains all California localities that you have stored. When you select AZ as the postal code, you will activate the custom fieldview that contains all Arizona localities that you have stored. If you enter the CA postal code, then enter the AZ postal code on the next line and return to the CA line, the list of Arizona localities will be available because that was the last list of active localities.

  • Local Rate: Enter the local sales tax rate in this field. The rate that appears in this field will be used on line 12 of the General Sales Tax Deduction Worksheet.
  • Optional Local Table: If the taxpayer resides in one of the states / localities listed in the following table, select the letter of the table that corresponds to the taxpayer's location. The AGI and number of exemptions reported on Form 1040 are used to determine the correct table value using the Optional Local Table indicated in this column.
    IF you live in the state of… AND you live in… THEN use Local Table…
    Alaska Any locality C
    Arizona Mesa, Pheonix A
    Chandler, Gilbert, Glendale, Peoria, Scottsdale, Tempe, Tucson, Yuma, or any other locality B
    Arkansas Any locality B
    Colorado Adams County, Arapahoe County, Boulder County, Centennial, Colorado Springs, Denver City/Denver County, El Paso County, Larimer County, Pueblo County, or any other locality A
    Aurora, Boulder, Fort Collins, Greeley, Jefferson County, Lakewood, Longmont, or Pueblo City B
    Arvada, Thornton, or Westminster C
    Georgia Any locality B
    Illinois Aurora, Elgin, or Waukegan B
    Arlington Heights, Bloomington, Champaign, Chicago, Cicero, Decatur, Evanston, Joliet, Palatine, Peoria, Schaumburg, Skokie, Springfield, or any other locality A
    Louisiana Ascension Parish, Bossier Parish, Caddo Parish, East Baton Rouge Parish, Iberia Parish, Jefferson Parish, Lafayette Parish, Lafourche Parish, Livingston Parish, Orleans Parish, Ouachita Parish, Rapides Parish, St. Bernard Parish, St. Landry Parish, St Tammany Parish, Tangipahoa Parish, or Terrebonne Parish C
    Calcasieu Parish, or any other locality B
    Mississippi City of Jackson only A
    City of Tupelo only B
    Missouri Any locality B
    New York

    Counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chemung, Clinton, Cortland, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Nassau, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Rockland, St. Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, Steuben, Suffolk, Sullivan, Tompkins, Ulster, Warren, Washington, Westchester, Wyoming, or Yates

    Cities: Olean, Salamanca, Auburn, Golversville, Johnstwown, Oneida (Madison County), Rome, Utica, Oswego, Saratoga Springs, Ithaca, Glens Falls, Mount Vernon, New Rochelle, White Plains, Yonkers

    B

    Counties: Chautauqua, Chenango, Columbia, Delaware, Greene, Hamilton, Tioga, Wayne

    Cities: New York or Norwich (Chenango County)

    A
    Any other locality D
    North Carolina Any locality A
    South Carolina Aiken County, Andersonn County, Bamburg County, Charleston County, Cherokee County, Chesterfield County, Darlington County, Dillon County, Florence County, Georgetown County, Hampton County, Horry County, Jasper County, Lee County, Lexington County, Marion County, Marlboro County, Newberry County, Orangeburg County, York County, or any other locality B
    Tennessee Any locality B
    Utah Any locality A
    Virginia Any locality B

Use this field to enter the amount of sales tax paid on a major purchase made during the tax year. The amount of sales tax entered here is included on line 25 of the General Sales Tax Deduction Worksheet and is added to the calculated table amounts (or actual taxes paid in lieu of the table amount) when applicable to determine the total amount of deductible sales tax. For more information on what qualifies as a major purchase, refer to the Schedule A instructions.

Use this field to enter the actual state and local general sales taxes (including compensating use taxes) paid and selective sales taxes if the tax rate was the same as the general sales tax rate (general sales tax rate items, for example, include food and clothing). The amounts entered here report on line 23 of the General Sales Tax Deduction Worksheet. The application will use the greater of the amount reported on line 23 or the table value reported on line 22 to calculate the deductible amount of sales tax.

The optional sales tax tables published by the IRS use the available income to calculate the applicable table value. Enter any nontaxable items in the statement attached to this field.

Items entered here transfer to line 3 of the General Sales Tax Deduction Worksheet. Amounts entered here, combined with the adjusted gross income reported on Form 1040, Page 2, are used to determine the available income.

Note: The following nontaxable items report automatically on line 2 of the General Sales Tax Deduction Worksheet.

  • Tax-exempt interest
  • Nontaxable IRA distributions
  • Nontaxable pensions and annuities
  • Nontaxable Social Security benefits

Be certain the above items are not reported elsewhere.

Select the appropriate option to force general sales tax (actual), general sales tax (tables), or state/local income tax deduction.

Enter X in this field to exclude the refundable portion of refundable tax credits as a component of available income. Notice 2005-31 specifies that the total available income used to determine the table amount for the sales tax deduction includes the refundable portion of refundable tax credits, which is considered an increase in spendable income. The application automatically includes the refundable portion of refundable tax credits on line 3 of the General Sales Tax Deduction Worksheet when this field is not marked.

Interest Expenses

Enter the taxpayer's interest expenses in this section to complete the Interest You Paid section of Schedule A. The personal portion of home mortgage interest from Form 8829 or the Business Use of Home Worksheet and the personal portion of home mortgage interest from Schedule E, Page 1, transfer automatically to Schedule A.

Note: You can enter the interest paid for a particular mortgage here or in Screen MortgInt, but you should not enter information in both places for the same mortgage. If the mortgage interest deduction can be limited because of the amount or mixed use, enter the information in Screen MortgInt in this screen. Amounts entered here are added to amounts carried from Home Mortgage Worksheet A.

Enter the mortgage interest reported on Form 1098. Amounts entered here are added to allowable mortgage interest amounts calculated on Home Mortgage Worksheet A. A custom fieldview is available in the attached statement.

The information that follows describes some of the fields that appear in the attached statement.

  • Total Amount Paid (1098 Box 1): Enter the total amount of mortgage interest received from the payer/borrower. This amount is generally reported in box 1 of Form 1098, Mortgage Interest Statement.
  • Points Paid (1098 Box 6): Enter the total amount of points received from the payer/borrower. This amount is generally reported in box 6 of Form 1098, Mortgage Interest Statement.

    Notes

    • To be deductible, points must be paid on indebtedness incurred from the purchase, construction, or improvement of a principal residence (second home or home equity loan points do not qualify). Also, the amount borrowed must be secured by the principal residence. Charging of points must be an accepted business practice, and the points charged are not excessive in relation to normal business practices.
    • Do not include points paid on the refinance of an existing principal residence loan. Instead, enter this amount in the Refinancing points paid statement on Screen A. Points paid on a refinanced loan must be amortized over the term of the new loan.
  • Mortgage Type: Enter a code to identify the manner in which the proceeds of the mortgage were used. The mortgage type entered here is used to determine the allowable amount of interest included in the home mortgage interest adjustment on Form 6251, line 4. The available mortgage type codes are listed in the table that follows and in the fieldview.

    Code Description
    Blank Used to buy, build, or improve main/qualified second home (default)
    1 Not used buy, build, improve home, or investment
    2 Used to pay off previous mortgage
    3 Used to pay off previous mortgage, excess proceeds invested
    4 Taken out before 7/1/82 and secured by home used by taxpayer
  • AMT Percent (If not 100%): If the mortgage proceeds and related interest are not eligible for inclusion in the home mortgage interest adjustment for AMT, enter the percentage to be applied to the total interest paid. When this column is blank, the application assumes 100 percent of the mortgage proceeds and related interest qualify to be included in home mortgage interest adjustment for AMT.

    Note: Interest amounts not allowed for AMT with a Mortgage Type of 3 will automatically transfer to the AMT version of Form 4952, line 1 as investment interest expense.

  • Allowed AMT Amount: The application uses the percentage entered in the AMT Percent (If not 100%) column to calculate the allowable portion of interest for AMT purposes.
  • Refunded Interest (1098 Box 4) & Refunded Interest Code: Enter the total mortgage interest refunded or credited to the taxpayer for overpayments of mortgage interest made in a prior year or years. This amount is generally reported in box 4 of Form 1098, Mortgage Interest Statement. This amount may or may not be taxable in the current year, depending on whether or not the interest was deducted in a prior year or years. If the taxpayer itemized deductions in the year(s) the interest was paid, and the amount is deemed taxable in the current year, enter a 1 in the Refunded Interest Code column. The application treats all refunded interest amounts with a refunded interest code of 1 as taxable income, and includes the amount on Form 1040, line 21. For more information about itemized deduction recoveries, see IRS Publication 525, Taxable and Nontaxable Income.
  • Mortgage Insurance Premiums: Enter the total mortgage insurance premiums (commonly referred to as PMI) paid on the acquisition of a qualified residence in 2017. This amount is generally reported in box 5 of Form 1098, Mortgage Interest Statement. The application automatically calculates allowable mortgage insurance premiums deducted on Schedule A, line 13 and prints this calculation in a non-required statement.

    Note: The deduction for mortgage insurance premiums is limited (and in some cases, fully phased-out) if adjusted gross income is more than $100,000 ($50,000 if married filing separately).

  • Do Not Proforma: Enter X in this field to delete the item on next year's proforma.

Notes

  • When claiming the mortgage interest credit, amounts entered in this statement transfer to Form 8396, line 1. The portion of the amount shown on Form 8396, line 3 that is attributable to home mortgage interest from Form 1098 is automatically subtracted from the total deductible interest paid on Schedule A, line 10.
  • The personal portion of mortgage interest from Form 1098 entered in Screen Rent will automatically be included in the total reported on Schedule A, line 10.
  • If the homeowner received assistance under a State Housing Finance Agency Hardest Hit Fund program, or an Emergency Homeowners' Loan Program (which may or may not be reflected on Form 1098-MA), see IRS Publication 530, Tax Information for Homeowners to determine the amount to deduct on line 10. If the taxpayer did receive Form 1098-MA, also see the Copy B Instructions for Homeowner.

Use the statement attached to these fields to enter the payee name, Social Security or Employer Identification number, payee address, and the amount of interest paid for items not reported on Form 1098, Mortgage Interest Statement.

The information that follows describes some of the fields that appear in the attached statement.

  • Total Amount Paid: Enter the total amount of mortgage interest received from the payer/borrower.
  • Mortgage Type: Enter a code to identify the manner in which the proceeds of the mortgage were used. The mortgage type entered here is used to determine the allowable amount of interest included in the home mortgage interest adjustment on Form 6251, line 4. The available mortgage type codes are listed in the corresponding fieldview. If no entry is made, the default mortgage type is Used to buy, build or improve main/qualified second home.

  • AMT Percent (If not 100%): If the mortgage proceeds and related interest are not eligible for inclusion in the home mortgage interest adjustment for AMT, enter the percentage to be applied to the total interest paid. When this column is blank, the application assumes 100 percent of the mortgage proceeds and related interest qualify to be included in home mortgage interest adjustment for AMT.

    Note: Interest amounts not allowed for AMT with a Mortgage Type of 3 will automatically transfer to the AMT version of Form 4952, line 1 as investment interest expense.

  • Allowed AMT Amount: The application uses the percentage entered in the AMT Percent (If not 100%) column to calculate the allowable portion of interest for AMT purposes.

Notes

  • When claiming the mortgage interest credit, amounts entered in this statement will transfer to Form 8396, line 1. The portion of the amount shown on Form 8396, line 3 that is attributable to home mortgage interest from other than Form 1098 is automatically subtracted from the total deductible interest paid on Schedule A, line 11.
  • The personal portion of other mortgage interest entered in Screen Rent will automatically be included in the total reported on Schedule A, line 11.
  • If the homeowner received assistance under a State Housing Finance Agency Hardest Hit Fund program or an Emergency Homeowners' Loan Program (which may or may not be reflected on Form 1098-MA), see IRS Publication 530, Tax Information for Homeowners to determine the amount to deduct on line 11. If the taxpayer did receive Form 1098-MA, also see the Copy B Instructions for Homeowner.

Enter the names and addresses of any other persons who received Form 1098 for a mortgage (and the interest paid on that mortgage) for which the taxpayer was jointly liable. Information entered in this statement automatically prints in a required statement for Schedule A, line 11.

If the taxpayer paid mortgage interest to the recipient in excess of the amount shown on Form 1098, enter the explanation for this difference in the statement provided.

Use the statement attached to these fields to enter the information necessary for the application to calculate the deductible amount of prepaid mortgage insurance premiums for the current year.

The information that follows describes some of the fields that appear in the attached statement.

  • Date Paid: Enter the date (MM/DD/YYYY) the mortgage insurance premiums were paid or accrued. Only mortgage insurance premiums paid or accrued on or after January 1, 2008, and on or before December 31, 2017 qualify to be capitalized. The application uses the date in this field to determine the number of months of amortization for the current year.
  • No. Pmts: The application automatically defaults the number of payments to 84 since the average life of a mortgage insurance contract on home mortgages is generally 7 years (84 months). If the stated term of the mortgage is less than 7 years (84 months), enter the number of months in this field instead. This field is used to compute the amortized mortgage insurance premiums for the current year.
  • Total Insurance Premiums Paid: Enter the total amount of amortizable prepaid mortgage insurance premiums in this field. The application uses this field in conjunction with the Date and No. Pmts fields to calculate the amortized mortgage insurance premiums in the current year.
  • Mortgage Type: Enter a code to identify the manner in which the proceeds of the mortgage were used. The mortgage type entered here is used to determine the allowable amount of interest included in the home mortgage interest adjustment on Form 6251, line 4. The available mortgage type codes are listed in the corresponding fieldview. If no entry is made, the default mortgage type is Used to buy, build or improve main/qualified second home.
  • AMT Percent (If not 100%): If the mortgage proceeds and related insurance premiums are not eligible for inclusion in the home mortgage interest adjustment for AMT, enter the percentage to be applied to the total interest paid. When this column is blank, the application assumes 100 percent of the mortgage proceeds and related interest qualify to be included in home mortgage interest adjustment for AMT.
  • Current Amort: The application will automatically fill in this field if the Date, No. Pmts, and Total Points fields have already been entered. To override the calculated amount, enter an amount in this field. The current amortization is used in determining the deductible mortgage insurance premiums reported on Schedule A, line 13.
  • Prior Amort: Enter the previously-deducted mortgage insurance premiums in this field. This amount proformas from year to year.
  • Unamort Bal: Enter the amount of mortgage insurance premiums that have not been previously amortized in this field. This value calculates automatically based on entries in the Total Insurance Premiums Paid and Prior Amort fields.
  • Mortgage Paid Off: Enter X in this field to indicate that the mortgage was paid off early. Any unamortized balance of prepaid insurance premiums remaining at the time the mortgage is paid off is not deductible and cannot be carried over to a future year.

Use the statement attached to these fields to enter the information necessary to calculate the deductible amount of mortgage points for the current year. Amounts entered here are also used on Home Mortgage Worksheet A. A custom fieldview is available in the attached statement.

Amounts you have entered in the asset module as Amortization and coded Sec 461 - Mortgage points, are included in the Points not reported on Form 1098 line of Schedule A. The non-submittable statement, which details the total for this line, prints the description "Mortgage Points - Section 461" and the amount.

The information that follows describes some of the fields that appear in the attached statement.

  • Date: Enter the complete date of refinance (MM/DD/YYYY). The application uses the date in this field to determine the number of months of amortization for the current year. The date is also used with the No. Pmts field to determine if this is the final year of the refinance.
  • No. Pmts: Enter the total number of payments over the period of the refinance. This field is used to compute the amortized points for the current year.
  • % of Principal Exceeding Original Mortgage (AMT): Enter the percentage of the balance of the new mortgage that exceeded the balance of the original mortgage prior to refinancing. The application uses this percentage to calculate the allowable amount of current amortization to be taken into consideration when calculating the home mortgage interest adjustment for AMT. Deductibility of disallowed interest amounts should be determined based upon the use of the mortgage proceeds and entered on the appropriate screen or form. A diagnostic generates to report the disallowed amount of interest paid in the form of points when applicable.
  • Total Points: Enter the total amount of amortizable mortgage points in this field. The application uses this field in conjunction with the Date and No. Pmts fields to calculate the amortized points in the current year.
  • Current Amort: This field fills automatically if the Date, No. Pmts, and Total Points fields have already been entered. To override the amount calculated by the application, enter an amount in this field.
  • Prior Amort: Enter the previously deducted mortgage points in this field. This amount proformas from year to year.
  • Unamort Bal: Enter the amount of mortgage points that have not been previously amortized in this field. This value computes automatically based on entries in the Total Points and Prior Amort fields.
  • On CY 1098: Enter X in this field if the refinancing points are reported on a current-year Form 1098. The application uses this to determine the appropriate line of the Schedule A to report the mortgage points deduction.
  • Fully Deducted: Enter X in this field to allow the deduction of all previously unamortized mortgage points. If, based on the Date and No. Pmts fields, the application determines this is the final year of refinance; this field will automatically be marked for you. If this field is marked, this item will not be proforma'd.

Use the attached statement to enter investment interest expenses not reported elsewhere. You can also enter investment interest expenses in Screen K1-3. A custom fieldview is available in the attached statement.

You can deduct items coded 1 on Schedule A. Items coded 2 are used for AMT purposes. See the overview of Screen 4952 for a detailed explanation of these codes. The amount of investment interest expense deduction calculated on Form 4952 transfers to Schedule A.

Please note that non-deductible home mortgage interest treated as investment interest also transfers from the Home Mortgage Limitation Worksheets to the investment income calculation. Do not enter amounts here that transfer from the Home Mortgage Limitation Worksheet.

Charitable Contributions

Enter the taxpayer's charitable contribution codes, descriptions, and amounts in the statements provided. This information is used to calculate the limited deductible amounts that transfer to the Gifts to Charity section of Schedule A.

Notes

  • A custom paragraph may be included to report the amount of any contribution carryover in the transmittal letter. To select this custom paragraph on a client basis, select custom paragraph Contribution C/O (TL) from one of the Paragraph Description fieldviews in Screen Letter. To select this custom paragraph to print for all clients when applicable, choose Setup > 1040 Individual, click the Letters & Emails button in the Federal tab, click the Custom Paragraphs tab, and mark the Contribution C/O (TL) checkbox. For additional information, see Custom paragraphs FAQs.
  • A custom paragraph may be included in the transmittal letter to explain the substantiation requirements for total cash contributions reported on the return. To select this custom paragraph on a client basis, select custom paragraph Contribution Support (TL) from one of the Paragraph Description fieldviews in Screen Letter. To select this custom paragraph to print for all clients when applicable, choose Setup > 1040 Individual, click the Letters & Emails button in the Federal tab, click the Custom Paragraphs tab, and mark the Contribution Support (TL) checkbox. For additional information, see Custom paragraph FAQs
  • A custom paragraph may be included to explain the substantiation requirements for noncash contributions reported on the return. To select this custom paragraph on a client basis, select custom paragraph Noncash Contributions (TL) from one of the Paragraph Description fieldviews in Screen Letter. To select this custom paragraph to print for all clients when applicable, choose Setup > 1040 Individual, click the Letters & Emails button in the Federal tab, click the Custom Paragraphs tab, and mark the Noncash Contributions (TL) checkbox. For additional information, see Custom paragraph FAQs
  • To sort cash and noncash contributions alphabetically during proforma, choose Setup > 1040 Individual, click the Other Return Options button, click the Proforma tab, and mark the Sort cash and noncash charitable contribution items during proforma checkbox.

Use the statement attached to this field to enter any contributions made by either cash or check. In the Code field in the statement, the application defaults to Subject to 50% limitation if a code is not selected. Use the Date of Contribution field to enter the date the charitable contribution was made. This field is for tracking purposes only and is not required. Fifty- and thirty-percent contributions entered in Screens K1-3 and K1T as well as at-risk adjustments also transfer to Schedule A. A custom fieldview is available in the attached statement.

The codes that are available in the State Use and State Institution Code fields in the attached statement are specific to the state postal code entered in the State field. If state use codes and/or state institution codes are not applicable to the entered state, state use codes will not be available.

  • For Arizona returns, enter state use code 4, 5, 6, or 17 to identify the type of credit for which the contributions qualify. Contributions entered in the statements attached to these fields will transfer to UltraTax/1040-AZ Screen AZCr.
  • For Indiana returns that qualify for Schedule CC-40 credit, enter Date of ContributionState of IN, State use code 24, and a 4-digit State Institution Code.
  • For Iowa returns, enter state use code 12 to identify the Injured Veterans Grant Program Contributions, code 13 to identify the School Tuition Organization Contributions, or code 23 to identify the Endow Iowa Contributions that need to be excluded from Iowa Schedule A. Items with an Iowa postal code and state use code 12, 13, or 23 will not be included in the contributions reported on Iowa Schedule A. If the contribution is subject to AGI limitations, UltraTax CS will exclude only the amount allowed on federal Schedule A from Iowa Schedule A. Any disallowed federal carryover will proforma and the future Iowa Schedule A should be adjusted.

    Items with an Iowa postal code and state use code 12 will be reported on Form IA 1040 with the "other adjustments." Any disallowed federal carryover will proforma and the future Iowa Schedule A and the "other adjustments" should be adjusted.

    Items with an Iowa postal code and state use code 13 will be used when calculating Form IA 148. Any disallowed federal carryover will proforma and the future Iowa Schedule A should be adjusted.

    Items with an Iowa postal code and state use code 23 will be used when calculating Form IA 148. Any disallowed federal carryover will proforma and the future Iowa Schedule A should be adjusted.

  • For Arkansas returns, enter state use code 7 to identify the type of contribution as a check-off contribution. These contributions transfer to UltraTax/1040-AR Screen AR3 and appear on Form AR3, Itemized Deduction Schedule.
  • For Georgia returns, enter state use code 20 to identify the type of credit for which the contributions qualify. The allowed amount of the credit entered in the statement will transfer to UltraTax/1040-GA as an addition to Georgia itemized deductions and a credit for Qualified Education Expense credit - pass through.
  • For Georgia returns, enter state use code 22 to identify the type of credit for which the contributions qualify. The allowed amount of the credit entered in the statement will transfer to UltraTax/1040-GA as an addition to Georgia itemized deductions and a credit for Qualified Education Expense credit - personal.
  • For Missouri returns, enter state use code 18 to designate a Food pantry contribution. Missouri uses the charitable contribution deduction taken on federal Schedule A to determine the amount of addition to income required on the applicable Missouri forms.
  • For Oregon returns, enter state use code 10, 11, 14, 15, or 16 to identify the type of credit for which the contributions qualify. For code 10, enter the amount of the matching contribution on a separate line from the original contribution to the Oregon Cultural Trust. The add-back to income and the credit amount will display on the applicable Oregon forms with the proper codes.

Enter the number of miles driven for charitable contribution purposes. The application automatically calculates the allowable deduction and adds it to the statement for charitable contributions by cash or check. Mileage entered here is treated as a 50-percent charitable contribution.

Note: Because this field is a non-standard amount field (i.e. not a standard dollar amount type), custom statement attachments should not be added to this field, as doing so will cause the amount to be omitted from the return calculation.

Use the statement attached to these fields to enter noncash contributions of $500 or less. Use the Date of Contribution field to enter the date the charitable contribution was made. This field is for tracking purposes only and is not required.

If total noncash contributions are greater than $500 but less than $5,000, do not enter those amounts here, but enter the information in Screen 8283P1. If total noncash contributions are greater than $5,000, enter the information in Screen 8283P2. The amounts calculated on Form 8283 transfer to Schedule A. Do not enter information for the same contribution in Screens A and 8283P1 or Screen 8283P2. Noncash charitable contributions entered in Screens K1-3 and K1T as well as at-risk adjustments also transfer to Schedule A. Note that a custom fieldview is available in the attached statement.

The codes that are available in the State Use field in the attached statements are specific to the state postal code entered in the State field. If state use codes are not applicable to the entered state, state use codes will not be available.

  • For Arizona returns, enter state use code 4, 5, 6, or 17 to identify the type of credit for which the contributions qualify. Contributions entered in the statements attached to these fields will transfer to UltraTax/1040-AZ Screen AZCr.
  • For Arkansas returns, enter state use code 8 to identify the type of contribution as an Art and Literary contribution. These contributions transfer to UltraTax/1040-AR Screen AR3 and appear on Form AR3, Itemized Deduction Schedule.
  • For Colorado returns, enter state use code 9 to identify the type of contribution as gross conservation easement. This entry is used to calculate the addition to income on Form 104.
  • For Indiana returns that qualify for Schedule CC-40 credit, complete the Date of Contribution field, enter IN in the State field, and enter the 4-digit code in the State Institution Code field.
  • For Iowa returns, enter state use code 13 to identify the School Tuition Organization contributions. Use state use code 21 to identify the Qualified Conservation contributions. The amount(s) will transfer to UltraTax/1040-IA to be used when calculating Form IA 148. If the contribution is subject to AGI limitations, UltraTax CS will exclude only the amount allowed on federal Schedule A from Iowa Schedule A. Any disallowed federal carryover will proforma and the future Iowa Schedule A will be adjusted.
  • For Missouri returns, enter state use code 18 to designate a Food pantry contribution. Missouri uses the charitable contribution deduction taken on federal Schedule A to determine the amount of addition to income required on the applicable Missouri forms.
  • For Oregon returns, enter state use code 10, 11, 14, 15, or 16 to identify the type of credit for which the contributions qualify. For code 10, enter the amount of the matching contribution on a separate line from the original contribution to the Oregon Cultural Trust. The add-back to income and the credit amount will display on the applicable Oregon forms with the proper codes.

Miscellaneous Expenses

Enter taxpayer expenses that have not been reimbursed, tax preparation fees, gambling losses, and other expenses subject to and not subject to the two percent limitation. This information is used to complete the Job Expenses and Certain Miscellaneous Deductions and Other Miscellaneous Deductions sections of Schedule A. Gambling losses are automatically limited to the extent of gambling winnings, which include state lottery winnings entered in Screen W2G and in the Other income statement in Screen Income.

Note: Information transfers to these lines from other input screens or areas of the return. For instance, Portfolio deduction information transfers to Other expenses - investment from Schedule K-1.

Use the statements attached to these fields to enter the total amount of job expenses paid that were not entered elsewhere and that were not reimbursed. Business expenses reported on Form 2106. A custom fieldview is available in the attached statement.

UltraTax/1040 Pennsylvania and California users only: The codes that are available in the State Use field in the attached statement are specific to the state postal code entered in the State field. If state use codes are not applicable to the entered state, state use codes will not be available. When PA or CA is entered in the State field, the following state use codes are available.

State Use code Description
1 Miscellaneous expenses for PA Sch UE, Part C
2 Work clothes / uniforms for PA Sch UE, Part A
3 Small tools / supplies for PA Sch UE, Part A
4 Fees / insurance / premium for PA Sch UE, Part A
5 Qualified enterprise zone expenses (CA)

Use the statement attached to these fields to enter the total amount of union dues paid that were not entered elsewhere. Union dues entered in Screen W2 transfer to Schedule A. A custom fieldview is available in the attached statement. If you enter amounts in this statement or field, these amounts override amounts calculated from data entered elsewhere in the application.

Enter tax return preparation fees, including fees paid for electronic filing.

Note: Amounts entered in this field will be combined with the prior-year invoice amount when the Include prior year preparation fee from invoice on return field is marked in Screen Letter.

Use the statement attached to these fields to enter other expenses subject to the two percent limitation that you did not enter elsewhere. A custom fieldview is available in the attached statement.

Several items from other parts of the application transfer to Schedule A as other expenses subject to the two-percent limitation. These items include depreciation and amortization (except for points coded Section 461) reported for Schedule A in the asset module, portfolio deductions from Schedule K-1, loss from Form 4797, other casualty / theft deductions from Form 4684, excess deduction on termination from Screen K1T-2, losses from the total distributions of QTP/ESA accounts, losses from the total distributions of traditional and/or Roth IRAs, calculated from amounts entered in Screens IRA and 1099R, and repayments of railroad retirement benefits (less than $3,000) from Screen 1099R.

Use the statement attached to these fields to report total hobby expenses. The application limits the amount of expense to be deducted by the amount of hobby income reported in Screen Income. A custom fieldview is available in the attached statement.

Use the statement attached to these fields to enter any investment expenses that are not reported on Schedules K-1. Investment expenses paid on interest or dividends entered in Screen B&D or Screen Broker will automatically be reported on Schedule A. A custom fieldview is available in the attached statement.

You can deduct items coded 1 on Schedule A. Items coded 2 are for AMT purposes. See the overview of Screen 4952 for a detailed explanation of these codes.

Use the statement attached to this field to report other miscellaneous expenses not subject to the two percent limitation. Within the statement, use the Type Code column to identify the type of other expense item being deducted. When a type code is selected, the application automatically updates the Description column. A custom fieldview is available in the attached statement.

In some instances, certain other expense items not subject to the two percent limit will automatically transfer to Schedule A based on data entry and / or additional calculations performed elsewhere in the program. These items include the following:

  • Federal estate tax deduction
  • Impairment-related work expenses from Form 2106
  • Unrecovered annuity cost calculated from amounts entered in Screen 1099R
  • Repayments of railroad retirement benefits (less than $3,000) from Screen 1099R-2
  • Portfolio deductions not subject to 2% from Screen K1-3 (net of any basis or at-risk limitations)
  • Casualty and theft losses from Form 4684 or Form 4797
  • Gambling losses from Screen A, and calculated disallowed gambling losses
  • Bond premium amortization expenses from Screen A

Electronic filing notes

  • Electronic filing requires specific text descriptions for other expense items included on Schedule A, line 28. Only the following descriptions are allowed for electronic filing. The application automatically enters the appropriate description when you use the Type Code column.
    • Amortizable bond premiums
    • Casualty and theft loss
    • Federal estate tax
    • Gambling losses
    • Impairment-related work expenses
    • Claim repayments
    • Unrecovered pension investments
    • Schedule K-1
  • The application automatically generates similar descriptions for other expense items calculated in the return not entered in this Other expenses statement (for example, the Gambling losses statement). Below are the descriptions generated in the paper filed return, which are converted automatically in the electronic file to meet the electronic filing requirements listed above.
    • Bond Premium Amortization
    • Form 4684, Line 32; Form 4684, Line 38b; Form 4797, Line 18a
    • 1041 Estate Tax Deduction
    • Gambling Losses; Disallowed Gambling Loss
    • Exp Allocated to excluded inc
    • Form RRB-1099-R Repayment
    • Unrecovered annuity cost
    • Portfolio Inc Ded (K-1s); Basis Adjustment; At-Risk Adjustment

Use the statement attached to these fields to report amortizable bond premium on bonds acquired before October 23, 1986. A custom fieldview is available in the attached statement.

You can deduct items coded 1 on Schedule A. Items coded 2 are for AMT purposes. See the overview of Screen Misc for a detailed explanation of these codes.

Use the statement attached to these fields to report total gambling losses. The application automatically limits the gambling losses based on winnings entered in Screens Income and W2G. A custom fieldview is available in the attached statement.

Use the attached statement to enter expense information when electing to capitalize carrying charges. The application automatically prints the tax election with the return. If the return is being filed electronically, the tax election will be included in the electronic file.

Note: If you make this election in Screen A, do not make the same election in Screen Elect in the Elections folder, as duplicate elections may print. Expenses entered in the statement do not automatically transfer to the asset module. Capitalized amounts should be entered separately in the asset module to receive proper tax treatment.

If the taxpayer uses the same house on multiple Screens 8829, enter X to suppress the transfer of interest, qualified mortgage insurance, and taxes to Schedule A, and enter the allowable home mortgage interest in Screen A.

Enter an amount here to force the calculated net income before home office deduction on the Business Use of Your Home Worksheet for home offices #1 and/or #2.

Note: The calculated amount for net income is total wages. The application does not automatically reduce wages by any other business expenses not attributable to business use of home, such as travel, supplies, and business telephone expenses. If the employee has any of these business expenses, you must manually calculate the net income before home office deduction and enter this amount in the applicable field.

Enter the itemized deduction amount entered above which is directly connected with the production of investment income reported on Schedule B, Schedule D, and Form 4797. This information is used to complete Form 8615, line 2.

Enter the amount of the child's itemized deductions entered above that are directly connected to the production of the child's net capital gain and qualified dividends. This amount is used to calculate the net capital gain and qualified dividends included on line 5 of Form 8615.

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