When you enter the sale of your home in TurboTax, it will ask about a previous sale. Read the questions carefully. When you say that you sold another home less that two years ago, it will ask the reason for the current sale. Select "Change in place of employment." Continue through all the questions. TurboTax will calculate the partial exclusion and report it appropriately on your tax return.
You do have to save all your records, of course, for at least three years after you file the tax return. Your records include your 2021 tax return reporting the previous sale, and the records of the 2023 sale, as well as documentation of the reason for the move. "The cost of the move" is not deductible, so you don't need records of that.
To enter the sale of your primary home in TurboTax, go to:
- Federal Taxes
- Wages & Income
- I'll choose what I work on
- Less Common Income
- Sale of Home
Or, in the Search box type "sale of home" (without the quotes), then click the link that says "Jump to sale of home."
