IRS Revises State and Local Tax Deduction Worksheet for High AGI Filers

IRS Post-Release Form Changes

Published March 9th, 2026

Detected March 20th, 2026

Summary

The IRS has revised the State and Local Tax Deduction worksheet for the 2025 Form 1041 instructions. The revision addresses an issue affecting filers with adjusted gross income over $500,000. Filers who previously used the old worksheet and now qualify for a higher deduction are advised to file an amended return.

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What changed

The IRS has updated the State and Local Tax Deduction worksheet within the 2025 instructions for Form 1041. This revision specifically targets an issue that impacted the deduction calculation for certain filers whose adjusted gross income exceeded $500,000. The changes affect lines 4, 6, and 7 of the worksheet, and a new line 8 has been added to present the final state and local tax deduction amount.

Taxpayers who have already filed their 2025 Form 1041 using the previous version of the worksheet and find that the revised worksheet yields a larger deduction should file an amended 2025 Form 1041 to claim the additional amount. The IRS notes that filers with an adjusted gross income of $500,000 or less will not be impacted by these changes.

What to do next

Review the revised State and Local Tax Deduction worksheet in the 2025 Form 1041 instructions.
If Form 1041 has already been filed and the revised worksheet results in a higher deduction, file an amended 2025 Form 1041.

Source document (simplified)

Changes to the State and Local Tax Deduction Worksheet in the 2025 Instructions for Form 1041

More In Forms and Instructions

We revised the State and Local Tax Deduction worksheet. The purpose of the revision was to resolve an issue with the prior worksheet which may affect the deduction calculation for certain filers with adjusted gross income of more than $500,000. If your 2025 adjusted gross income was not more than $500,000 the changes to the worksheet will not impact the calculation of your state and local tax deduction.

We revised lines 4, 6, and 7 of the worksheet. We also added new line 8. Line 8 is now the last line of the worksheet and contains the amount of your state and local tax deduction.

If you have previously filed your 2025 Form 1041 and used the prior version of the State and Local Tax Deduction Worksheet to determine your state and local tax deduction, and doing a recalculation using this new State and Local Tax Deduction Worksheet results in a higher deduction, you should file an amended 2025 Form 1041.

Page Last Reviewed or Updated: 09-Mar-2026
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