Section 07 - Data-Itemized Deductions

Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 07 invalid conditions.

The following fields are displayed for Section 07 on Form 1040-NR:

Form 1040-NR

Field Title

0701A

State and Local Income Tax

0702

Cash Contributions

0703

Other Contributions

0704

Carryover Contributions

0705

Total Contributions

0706

Total Casualty/Theft Loss

0707

Other Miscellaneous Deductions

0708

Total Itemized Deductions

0708V

Total Itemized Deduction Verified

When processing a dual-status return and Itemized Deductions are claimed on Schedule A Form 1040 that do not have a corresponding line on Schedule A of Form 1040-NR, enter the amount(s) in Field 0707.

On Form 1040-NR, the taxpayer can itemize deductions against income reported as Effectively Connected Income only.

TY19 and prior, on MeF Form 1040-NR, Schedule A is displayed as page 3 of the Form 1040-NR and isn’t listed as a separate schedule in the MeF Return Request and Display. Scroll through the pages of the Form 1040-NR to find Schedule A.

Taxpayers who exclude income from Puerto Rican sources under IRC 933 may only claim the portion of itemized deduction that is related to the income that is taxable on Form 1040.

Dual-status taxpayers are not entitled to the standard deduction.

Deductions claimed on Schedule A, Form 1040 and statement attached to the Form 1040-NR controlling return will be combined with Form 1040-NR, Schedule A deductions. Those fields not applicable to Form 1040-NR should be combined and entered in Field 0707.

If Form 1040 is the controlling return, Code & Edit edits CCC "Y" on the return to force the return to ERS for review. ERS enters "1" in Field 07IEI to assure that the standard deduction isn’t used. See the instructions in EC 260 at IRM 3.22.3.193.3.

Field 0701A is transcribed from line 1a, Form 1040-NR, Schedule A.

Field 0702 is transcribed from line 2, Form 1040-NR, Schedule A.

Field 0703 is transcribed from line 03, Form 1040-NR, Schedule A for (Other than Cash) contributions.

Field 0704 is transcribed from line 04, Form 1040-NR, Schedule A for (Carry-Over from Prior Year) contributions.

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Field 0705 is transcribed from line 5, Form 1040-NR, Schedule A.

Field 0706 is transcribed from line 6, Form 1040-NR, Schedule A.

Losses are allowable only for property located in the United States. A supporting Form 4684, Casualties and Thefts, is required.

Field 0707 is transcribed from line 07, Schedule A, Form 1040-NR. This field is comparable to Field 0716 on Form 1040 Schedule A. Refer to EC 246.

Field 0708 is located on line 8 of Schedule A, Form 1040-NR. Refer to EC 246 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.