1040 - Schedule 3, Other Payments Adjustment

How can I make an adjustment to Schedule 3, Part II for other payments? 

If an adjusting entry is needed on Schedule 3, for other payments, the adjustment can be made in data entry by going to the General tab > 5 Taxes, Credits and Payments screen > Schedule 3, Part II, Line:

  • 13d or 13z in Drake21
  • 12d in Drake20
  • 13 in Drake19
  • 54 in Drake18

Generally, both the Form number for which the payment was made and the associated dollar amount must be entered. In Drake21, line 13d is only for section 1341, so the form number does not need to be entered.

The following form selections will allow the return to be electronically filed, while including the following adjustment(s):

  • 2439 - Form 2439 - Notice to Shareholder of Undistributed Long-Term Capital Gains
  • 8885 - Form 8885 - Health Coverage Tax Credit
  • 1341 - I.R.C. 1341 - Credit for Repayments

If any other form number is entered, EF message 5578 will be generated preventing e-filing of the return. The other form numbers can still be used, but result in the return needing to be paper-filed. 

EF Message 5578: 

RETURN NOT ELIGIBLE FOR E-FILE: Form 1040, is eligible for e-file if the payments on Schedule 3, line 13 are from Forms 2349, 8885, or I.R.C. 1341.  If a payment is being applied from any other form, the return must be paper-filed.

Return to screen 5 and review the entries on line 12, "Other Payments."

For more information, see Form 1040 instructions