How can I fix this issue without paying more money? Turbotax is not correctly populating Schedule E Worksheet Disallowed Passive Losses years 2022 and 2023.

[Jenava0]

In schedule E worksheet, the section Carryovers to 2024 Smart Worksheet, in the table for Disallowed Passive Losses by Year and Type, year 2022 has 2023's value for S. Operating loss column Carryover Tax, and 2022's Carryover Tax value is missing from the form. 2023's Carryover Tax is blank. This is a TurboTax bug. I cannot edit the form in the web app, and I don't want to pay additional fees to fix this TurboTax bug by switching to the Desktop version. Is there any recourse for this so that I can finish my taxes? Can I get a refund if I buy the Desktop app specifically to fix only this issue?

[ThomasM125]

When you enter your rental information in TurboTax, you will see an option on the screen that says Do Any of These Situations Apply to This Property? To indicate that "I have passive activity real estate losses carried over from a prior year":

Later, you will see a screen where you can enter your passive loss carryover from 2023:

You don't need to segregate the losses by year, just enter the loss carryover available at end of 2023.

[Jenava0]

That might work if the property is entered completely new. I don't get that question,  likely because I've used Turbotax for many years and had my property for several years as well.

[PatriciaV]

When you run Smart Check, TurboTax will present a section of Schedule E Worksheet Carryovers to 2024 Smart Worksheet, Disallowed Passive Losses by Year and Type. For some properties, the carryovers are out of sequence. For instance, 2022 is on the 2021 line. Or the 2023 number is on the 2022 line. 

To fix this, enter the correct number starting with the most recent year. Then move up the schedule until all years are correct. This may be easier if you can access your 2023 return and print the Schedule E worksheet.