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Other adjustments to income on Form 1040 in ProConnect Tax

SOLVEDby Intuit1Updated July 10, 2023

This article will help you understand and generate less common adjustments on Form 1040, Schedule 1. In previous years, these adjustments didn't have a dedicated line, and were written-in.

The IRS instructions for Form 1040 list the allowable adjustments and where to report them. Follow the steps below to generate the adjustment your client can claim.

Table of contents:

Archer MSA deduction
Jury duty pay
Expenses from rental of personal property (PPR)
Contributions to 501(c)(18)(D) plans
Excess deductions of 67(e)
For other adjustments
Why is the Section 461(l) excess business loss shown as positive?

Archer MSA deduction

  1. Go to Input Return Deductions HSA/MSA/LTC Contracts (1099-SA, 5498-SA) > Medical Savings Accounts (8853).
  2. Enter a 1 or 2 in 1=self-only coverage, 2=family coverage.
  3. Enter the Total MSA contributions that you made.
  4. Enter the health plan's Annual deductible.

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Jury duty pay

  1. Go to Input Return Deductions Adjustments to Income.
  2. Select the Less Common Scenarios tab.
  3. Scroll down to the Other Adjustments section.
  4. Enter the amount in Jury duty pay given to employer.

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Expenses from rental of personal property (PPR)

  1. Go to Input Return Deductions Adjustments to Income.
  2. Select the Less Common Scenarios tab.
  3. Scroll down to the Other Adjustments section.
  4. Enter the amount in Expenses from the rental of personal property.

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Contributions to 501(c)(18)(D) plans

  1. Go to Input Return Income Wages, Salaries, and Tips.
  2. Scroll down to the Box 12 section.
  3. Enter the amount in Box 12.
  4. Select the box 12 code H-Elective deferrals to 501(c)(18)(D).

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Excess deductions of 67(e)

  1. Go to Input Return Passthrough K-1s Estate or Trust Information (1041 K-1).
  2. Scroll down to the Lines 9-11 Deductions section.
  3. Enter the amount in (11a) Excess deductions on termination - Section 67(e) expenses.

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For other adjustments:

Follow these steps to generate adjustment codes that don't have a dedicated input field:

  1. Go to Input Return Deductions Adjustments to Income.
  2. Select the Less Common Scenarios tab.
  3. Scroll down to the Other Adjustments section.
  4. Click inside the field labeled Other (click button to expand).
  5. Enter the amount and the write-in adjustment code to print on the form.

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Why is the Section 461(l) excess business loss shown as positive?

When a negative amount is reported on Form 461, line 16, the instructions state to report that same amount as a positive number on Schedule 1.

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