Since your sale was $120,000 which is less than the $250,000 home sale exclusion allowed when you live in a house for 2 out of the last 5 years, you will simply need to enter the sale in TurboTax, and then answer the questions about how long you lived there and owned the home. With the home sale exclusion, you will not have to pay taxes on this money, but you will still need to report the sale. How you used the money does not affect how it is taxed or reported.
To enter the Sale of a Home select the following:
- Federal
- Income
- Sale of Home under Less Common Income
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