Deductions Menu

In Tax Processors Plus Online, adjustments, itemized deductions, and credits are entered within the Deductions Menu.

Adjustments

Under the Adjustments menu, you will find the following forms and adjustments:

• Medical Savings Account Form 8853
• Educator Expenses
• Armed Forces reservists, Qualified Performing Artists, and Qualified Government Employees, or those with impairment-related work expenses
• Health Savings Account Form 8889
• Moving Expenses Form 3903
• Contributions to SEP, Simple, and Qualified Plans
• Self-Employed Health Insurance
• Penalty on Early Withdrawal of Savings or CD
• Alimony Paid
• Traditional IRA Contributions 
• Nondeductible IRAs Form 8606
• Student Loan Interest Deduction
• Other Adjustments
  • Amortization Deduction for Reforestation Costs
  • Trade Readjustment Allowance
  • Jury Duty Pay
  • Personal Property Rental Expenses
  • Contribution to section 501(C)(18)(D) pension plan
  • Contributions by certain chaplains to 403b plans
  • Certain attorney fees (see 1040 instructions)
  • Section 67 Excess Deduction
  • IRS Reward
  • Olympic Medal
  • Other Adjustments Not Listed Above 

Deductions

The program will automatically use the larger of standard or itemized deductions, based on the information that has been entered, however you can force it to use itemized deductions if desired. To force the use of itemized deductions, within the return select:

• Federal section
• Deductions
• Itemized Deductions
• Use Standard or Itemized Deduction - Select Force to use itemized deduction, then Continue.

Under the Itemized Deductions menu, you will find the following categories of deductions:

• Medical, Dental, and Vision Expenses
• Mortgage Interest and Expenses
• Qualified Mortgage Interest Worksheet on Loans less than $750,000
• Taxes You Paid (the program will automatically pull state and local from the W-2)
• Gifts to Charity
• Employee Business Expenses
• Unreimbursed Employee Business Expense
• Other Itemized Deductions
  • Amortizable premium on taxable bonds
  • Federal estate tax on income in respect to a decedent
  • Gambling losses to the extent of gambling winnings
  • Impairment-related work expenses
  • Repayment under claim if right greater than $3000
  • Unrecovered investment in pension
  • Tax Return Preparation
  • Safe Deposit Box Rental
  • Investment Fees and Expenses
  • Add/Edit Miscellaneous Deductions (for any additional not listed already)
• Less Common Deductions (Casualties and Losses, Business Use of Home, Investment Interest)
  • Casualties and Losses
  • Business Use of Home
  • Investment Interest

Credits

Under the Credits Menu you will find the following forms:

• Foreign Tax Credit Form 1116
• Child Care Credit Form 2441
• Investment Credit Form 3468
• Education Credits Form 1098-T
• Retirement Savings Credit Form 8880
• Residential Energy Credit Form 5695
• Increasing Research Activities Form 6765
• Adoption Credit Form 8839
• Mortgage Interest Credit Form 8396
• Claiming Certain Credits after Disallowance Form 8862
• Earned Income Credit (EIC) Checklist
• Credit for the Elderly or Disabled Schedule R
• Alternative Motor Vehicle Credit (Hybrid Cars) Form 8911
• Qualified Electric Motor Vehicle Credit Form 8936
• Small Employer Health Insurance Premiums Form 8941
• Credit for Federal Tax Paid on Fuels Form 4136
• Prior Year Minimum Tax Form 8801
• Qualified Electric Vehicle Credit Form 8834
• Holder of Tax Credit Bonds Form 8912
• Other nonrefundable credits used to report amount on Form 8978
• Less Common Credits
  • General Business Credit Form 3800
  • Work Opportunity Credit Form 5884
  • Biofuel Producer Credit Form 6478
  • Advanced Manufacturing Production Credit Form 7207
  • Clean Hydrogen Production Credit Form 7210
  • Nuclear Power Production Credit Form 7213
  • Passive Activity Credit Limitations Form 8582-CR
  • Low-Income Housing Credit Form 8586
  • Orphan Drug Credit Form 8820
  • Disabled Access Credit Form 8826
  • Enhanced Oil Recovery Credit Form 8830
  • Renewable Electricity Credit Form 8835
  • Empowerment Zone Employment Credit Form 8844
  • Credit for Employer Social Security and Medicare Taxes Form 8846
  • DC First-Time Homebuyer Credit Form 8859
  • Biodiesel and Renewable Diesel Fuels Credit Form 8864
  • New Markets Credit Form 8874
  • Small Employer Pension Plan Start-Up Costs and Auto-Enrollment Form 8881
  • Employer-Provided Childcare Facilities and Services Form 8882
  • Low Sulfur Diesel Fuel Production Credit Form 8896
  • Qualified Railroad Track Maintenance Credit Form 8900
  • Credit for Oil and Gas Production from Marginal Wells Form 8904
  • Energy Efficient Home Credit Form 8908
  • Credit for Employer Differential Wage Payments Form 8933
  • Employer Credit for Paid Family and Medical Leave Form 8994
  • Other Credit Carryforwards not listed